2020’s hottest cybersecurity stock Tesserent buys NZ play; shares up 676pc in 2020
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Lateral Security has become the first New Zealand acquisition of high flying cybersecurity company Tesserent (ASX:TNT).
Tesserent has been 2020’s most successful cybersecurity stock on the ASX.
The company gained 676 per cent in 2020 having started it at 4.3 cents and reaching 33 cents today.
Investors have look favourably about increased investment in the sector but also Tesserent’s acquisitions and revenue goals being achieved.
Tesserent is no stranger to New Zealand – it has a joint business with Optic Security which provides for cross-sell opportunities.
But this is the first acquisition across the Tasman.
Tesserent has been hoping to have similar success in New Zealand as it has in Australia and said the purchase of Lateral Security would help with this.
“The addition of Lateral Security to our growing group of cybersecurity specialists is a significant step in expanding our international capabilities to become ANZ’s number one ASX listed end to end cybersecurity provider,” said chairman Geoff Lord.
“Lateral will provide a stepping stone for our existing business to enter the NZ market.”
Wellington-based Lateral Security makes over 60 per cent of its revenue from the New Zealand government.
Tesserent said the purchase was a natural evolution in supporting cybersecurity efforts in the so-called “Five Eyes” nations.
It will pay $4.165 million to snap up Lateral with a mixture of shares and cash.
Tesserent accompanied this announcement with an update on Optic Security.
It announced Optic had won several key enterprise opportunities including a university, a local council and international fast-food chain.