Tesserent reaches $100m revenue goal; shares up over 400pc in 2020
Tesserent (ASX:TNT) told its shareholders this morning it had hit its $100 million annualised gross revenue target.
The diversified cybersecurity stock reached the goal with its latest acquisition – in cloud services provider iQ3.
Generally speaking, cloud services provide easy and secure access to applications and resources, without the need for internal infrastructure or hardware.
The acquisition will cost $17.2 million with consideration paid with an equal mix of cash and shares.
iQ3 had a FY20 turnover above $25 million and is immediately earnings and cash flow accretive. Its client list includes 24 NSW government departments.
The $100 million goal also marks a revenue increase of over 1,000 per cent since Tesserent refreshed its board back in January.
The company targeted this by years’ end. Chairman Geoff Lord said reaching the goal faster gave his company a solid base for future growth.
The company said the acquisition materially complemented its existing strategy and marked a significant step forward in its ability to provide a full end-to-end cyber service.
It also anticipates cross-sell and up-sell opportunities.
“The addition of Secure Cloud Services into our Cyber 360 strategy creates substantial opportunities, particularly as organisations transition to mobile and remote workforces as a result of COVID-19,” said CEO Julian Challingworth.
“We have already been providing tactical advice to our clients in this area so enabling these services is a natural next-step for Tesserent.”
2020 has been a superb year for Tesserent shareholders. Shares are up over 400 per cent since January when it was only 4.4 cents.
ASX companies received a further boost from the Morrison government’s investment into Australia’s capabilities.
Today Tesserent shares rose by a modest 7 per cent.