Why is the Tesserent (ASX:TNT) share price climbing 11% on Friday?

Is the newly finalised acquisition of Loop Secure boosting the Tesserent share price today?

| More on:
Tesserent cybersecurity professional man inspects server room and works on laptop

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Tesserent Ltd (ASX: TNT) share price is surging today despite no news being released by the company.

However, only minutes before yesterday's close, Tesserent announced it had completed its acquisition of Australian cybersecurity firm, Loop Secure.

Tesserent spent around $13.5 million to acquire Loop, using a mix of cash and scrip to pay.

At the time of writing, the Tesserent share price is 24.2 cents, 10% higher than its previous close.

Let's take a closer look at the most recent news from the internet security-as-a-service provider.

Tesserent finalises Loop acquisition

The Tesserent share price is gaining today despite no news from the cybersecurity and cloud services company. However, its recently finalised acquisition is a potential catalyst.

Yesterday, Tesserent announced it had completed its acquisition of Loop Secure. While investors' enthusiasm for Tesserent shares may have been spurred by this today, the acquisition has been a long time coming.

Tesserent first announced its plan to acquire Loop on 19 August.

Back then, the market was seemingly indifferent to the announcement. The Tesserent share price finished that session exactly where it had ended the previous one.

According to Tesserent, its purchase of Loop adds an additional $18 million of unaudited revenue to its books. Loop also has $2.25 million of sustainable earnings before interest, tax, depreciation, and amortisation (EBITDA).

Additionally, Loop's security services will strengthen Tesserent's Cyber 360 capabilities and deliver significant synergy and cross-selling benefits.

Tesserent previously said the acquisition would see it paying $7 million of cash on completion. It expects to pay another $2 million over the following 12 months.

Tesserent share price snapshot

Today's gains haven't been enough to boost the Tesserent share price back into the green.

The company's stock value has fallen 30% since the start of 2021. It is almost 7% lower than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Happy man and woman looking at the share price on a tablet.
Technology Shares

Bell Potter names the best ASX tech shares to buy

There's a lot to like about these tech shares according to the broker.

Read more »

Five happy friends on their phones.
Technology Shares

Analysts say these ASX tech shares are buys in December

Here's why these three shares have been named as buys.

Read more »

Happy woman and man looking at an iPad.
Technology Shares

2 ASX tech stocks you'll be glad you bought when the bull market starts

I reckon grab these technology shares now and watch the rising tide take them to the top.

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated.
Technology Shares

The CEO of this ASX 200 stock just sold $6 million in shares

It's never pleasant to see a CEO offload $6 million in stock...

Read more »

A man holds up a block from falling in a row of dominos.
Share Market News

Here's how the ASX 200 market sectors stacked up this week

The ASX 200 gained 0.36% and the technology sector stood out.

Read more »

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.
Technology Shares

Up 40%: What on earth happened to BrainChip shares in November?

How did Brainchip shares pull off such an incredible November?

Read more »

A man in a suit face palms at the downturn happening with shares today.
Technology Shares

Why is this ASX tech stock crashing 28% on Thursday?

Investors aren't happy about this tech stock's latest update.

Read more »

A surprised man sits at his desk in his study staring at his computer screen with his hands up.
Technology Shares

The CEO of this ASX 200 share just sold $3.9m of shares

This tech stock has just reported heavy insider selling. Should you be concerned?

Read more »