The Tesserent Ltd (ASX: TNT) share price is pushing higher during late afternoon trade. This comes after the internet security services company provided an update on two recent acquisitions.
At the time of writing, the Tesserent share price is 18 cents, up 6.06%.
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What did Tesserent announce?
According to its release, Tesserent advises it has completed the acquisitions of both Pearson Corporation and Claricent.
Tesserent bought both companies due to their strong position in the Federal Government marketplace. Following these two acquisitions, Tesserent's federal government businesses now contribute a combined annual turnover of $48 million to the group's overall results.
The additions have directly integrated into the company's ecosystem, particularly Tesserent's North Security business. This business manages Tesserent's federal government team and delivers large multi-year projects.
Tesserent expects its acquisitions to provide immediate organic growth in the second half of FY22. Additional locked-in recurring revenue in the remaining fiscal 6 months has been consolidated into Tesserent's FY22 results.
Tesserent agreed to pay $28.8 million for Pearson and $4.13 million for Claricent through a mix of cash and company shares. In total, the price tag for both acquisitions totalled $32.93 million.
Tesserent is due to pay these amounts in 2 instalments. It has already paid for around 50% of the enterprise value. It will pay the remaining 50% after the finalisation of audited accounts, expected in September 2022.
These acquisitions cement Tesserent's position as the leading provider of cybersecurity solutions and services to the Federal Government.
When the acquisition news was first announced on 7 December the Tesserent share price leapt by 10% in a day.
The company noted that it will provide a full business update as part of the upcoming 4C in the near term.
About the Tesserent share price
Tesserent shares are down a whopping 50% year to date.
Tesserent presides a market capitalisation of $209.32 million and has approximately 1.21 billion shares on its registry.
