MELBOURNE: Tesserent Limited (TNT) announced the strategic acquisition of Ludus Cybersecurity with the signing of a Share Purchase Agreement executed between both parties.

Ludus, headed up by industry-renowned cybersecurity expert, George Stewart, will be absorbed by Tesserent’s Canberra-based North Security to further enhance TNT’S strong Government offering, backed by the Federal Government’s recently announced $1.67B “Cyber Enhanced Situational Awareness and Response” (CESAR) package.

This acquisition rounds out Tesserent’s standing as the largest end-to-end cybersecurity services provider in the Canberra market with in excess of 180 locally-based cybersecurity specialists.

The acquisition is fully funded through Tesserent’s existing cash reserves. The consideration for the acquisition of Ludus is a mix of cash and TNT shares, being $536K cash and 4.3M Shares issued at22.41 cents per share, subject to shareholder approval if required prior to completion. The cash payment will be split over two payments, with $268K payable on completion and $268K 13 months after completion.

This follows the previous acquisitions of Seer Security, North Security and Pure Security, all of whom service Federal Government departments and agencies.

Tesserent Group companies are now exceptionally well represented on the Federal Government’s 2020 “Defence Cyber Industry Capability Report”.

TNT is now positioned as the leading cybersecurity provider supplying Federal Government departments and agencies.

Geoff Lord, TNT’s Chairman, commented; “with the Federal Government’s significant investment into cybersecurity and our comprehensive offering, as identified by the Austrade report, this positions Tesserent as a key player in securing Australia’s sovereignty, whilst taking advantage of the rapidly growing Canberra market. We see this as a cornerstone in maximising TNT’s long-term value for shareholders”.

Ludus, whilst modest in size, has a solid operating record and is immediately earnings and cash flow accretive to the Group. Ludus achieved in excess of $1.2M revenue and $350K in sustainable earnings in FY20, with strong revenue and earnings forecast for FY21. Importantly, the firm’s financial position is underpinned by multiple locked-in federal government contracts, and Tesserent expects to achieve strong financial growth from synergies as Ludus is integrated into North Security.

Mr Lord added; “Having someone as well-respected as George Stewart and his team at Ludus will be a real boost to our operations in Canberra and improve our already strong reputation within Federal Government departments and agencies. George’s appetite to take the majority of this consideration in TNT shares highlights his confidence in Tesserent’s vision”.