• Tesserent (ASX:TNT) reaches its goal of $100 million in gross revenue on an annualised run rate basis
  • Target reached through $17.2 million acquisition of cloud services provider iQ3
  • Shares up over 400 per cent 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.


‘A natural next-step for Tesserent’

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.”


Shares have rocketed in 2020

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.

The company and several of its ASX peers have benefited from increased demand for cybersecurity services generally.

With the majority of companies working remotely, attacks have potential to be more damaging.

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.

Tesserent (ASX:TNT) share price chart