Four ASX shares that are climbing more than most today are listed below. Here's why they are rising:

Azure Minerals Ltd (ASX: AZS)

The Azure Minerals share price is up 33% to 83 cents. Investors have been buying this lithium explorer's shares following the release of impressive drilling results from the 60%-owned Andover Project. Management believes the results demonstrate the potential for the Andover Project to host lithium resources of world-class scale and tenor.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is up almost 11% to 77 cents. This is despite there being no news out of the uranium miner. However, it is worth noting that a number of uranium shares are recording strong gains today. This may be partly due to analysts feeling upbeat on the outlook for uranium demand in the coming years, which bodes well for Paladin Energy.

Tesserent Ltd (ASX: TNT)

The Tesserent share price is up 145% to 12 cents. This morning, this cybersecurity company announced that it has accepted a takeover offer from Thales Australia of 13 cents per share. This represents a significant premium of 165.3% to its last close price and values Tesserent at $232 million on an enterprise value basis.

Xero Limited (ASX: XRO)

The Xero share price is up 4% to $113.58. Investors have been piling back into the tech sector on Tuesday following a strong rebound on Wall Street's tech-focused NASDAQ index. It isn't just Xero that is rising, the S&P ASX All Technology index is up a decent 2.3% this afternoon.

The post Why Azure Minerals, Paladin Energy, Tesserent, and Xero shares are racing higher appeared first on The Motley Fool Australia.

At the time of writing, the ASX tech share is up 150% to 12.2 cents.

Why is this ASX tech share rocketing higher?

Investors have been scrambling to buy the cybersecurity company's shares today after it announced that it has accepted a takeover offer from Thales Australia.

According to the release, the two parties have entered into a scheme implementation deed that will see Thales Australia acquire 100% of the share capital in Tesserent by way of a scheme of arrangement for 13 cents per share in cash.

This represents a significant premium of 165.3% to the ASX tech share's last closing price of 4.9 cents per share. It values Tesserent at $232 million on an enterprise value basis.

Board recommends takeover

Tesserent's Board unanimously recommends that shareholders vote in favour of the share scheme in the absence of a superior proposal and subject to the independent expert's report.

Each Tesserent director intends to vote the shares held or controlled by them in favour of the proposed share scheme. Once again, this is in the absence of a superior proposal and subject to the independent expert's report.

The agreement is also subject to foreign investment review board and shareholder approval, as well as other customary conditions.

Tesserent's chair, Geoff Lord, commented:

The Share Scheme represents a significant premium to Tesserent's recent share price, reflects an enterprise value of $232 million (up 35 times from $6.6 million as at 31 December 2019), delivers certainty of value and provides opportunity for shareholders to realise their investment in full for cash. Furthermore, the Share Scheme enhances outcomes for our customers, suppliers, and staff.

Tesserent's customers are expected to benefit from Thales' enhanced product suite, global service capabilities and the acceleration of Tesserent's existing growth and customer service strategy. As a result of the Share Scheme, Tesserent staff are further expected to have increased opportunities to develop new skillsets and access to new networks including international mobility to further advance and grow their careers.

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Malicious actors have been trolling the internet since its earliest days. Some attempt to seize control of your computer and hold it for ransom. Others attempt to steal people's personal data, which they may also hold for ransom or sell on the darknet.

While hackers are the proverbial dark side of the force here, ASX cybersecurity shares are working to keep household, corporate and government data safe from online thieves.

But as witnessed by the recent major hacks of telecom provider Optus and private health insurer Medibank, there's more work to be done to safeguard our virtual privacy and security.

What might hackers do with the stolen data?

The potential damage to impacted individuals will depend on the specifics of the stolen data, along with the hackers' own intentions.

As far as the Optus hack goes, Professor Vanessa Teague, a cryptographer from the Australian National University said (courtesy of ABC News):

In the Optus breach, what it seems to have primarily involved is identity documentation. And the thing that a person with malice might use it for, is exactly what you might use it for — and exactly the [reason] Optus had it for, which is identifying as that person in an online setting.

This kind of data could potentially allow hackers to get a credit card in the name of an impacted customer.

The MediBank breach poses different, but equally disturbing issues.

According to Teague, a person's medical data "isn't as useful for fraud [but] on the other hand, it potentially gives you much more power over some people, because it might reveal very intimate details about the person".

So, in the wake of all this hacking news, how have ASX cybersecurity shares been tracking?

How are ASX cybersecurity shares faring amid all these hacks?

The Optus data breach was reported to the public on 22 September. The Medibank hack came out only last week, with new details still emerging suggesting the data breach may be significantly worse than first reported.

For tracking the performance of these four ASX cybersecurity shares, we'll use the closing bell on 21 September as our starting date. And for context, we'll note that the All Ordinaries Index (ASX: XAO) has gained 1.1% over that time.

As for the BetaShares Global Cybersecurity ETF (ASX: HACK), the exchange-traded fund is up 3.5% since then. HACK's major holdings include international cybersecurity companies like Accenture, Cisco, Cloudflare and Crowdstrike.

As for internet security company Tesserent Ltd (ASX: TNT), it's trading right where it was when the Optus data breach news first broke.

Then there's ASX cybersecurity share Archtis Ltd (ASX: AR9). The Archtis share price is down 14.7% over this period.

And we leave off with WhiteHawk Ltd (ASX: WHK). The microcap ASX cybersecurity share is up 3.3% since the closing bell on 21 September.

The post How are ASX cybersecurity shares faring amid all these hacks? appeared first on The Motley Fool Australia.

Here's a run through of the results they posted to the market today.

Tesserent Ltd (ASX: TNT)

The Tesserent share price is leaping 8.7% to trade at 12.5 cents on Tuesday afternoon following the release of the company's financial year 2022 earnings. And what a financial year it was.

The cyber security service provider posted a $166 million turnover – representing a 71% year-on-year increase.

It also brought in $18.6 million of earnings before interest, tax, depreciation, and amortisation (EBITDA) on a normalised basis, representing a 94% lift.

Finally, its normalised net profit after tax (NPAT) rose 38% to $10 million.

EMvision Medical Devices Ltd (ASX: EMV)

Financial year 2022 was also good to EMvison Medical Devices, and the market apparently agrees. It's bidding the ASX medical imaging technology developer's stock 7.8% higher to $1.52 on the back of its earnings.

The company posted nearly $4.4 million of revenue for the financial year just been, 144% more than it did for the prior corresponding period (pcp).

Its losses also improved, lifting to a $6.1 million loss compared to financial year 2021's $8.4 million loss.

Energy Resources of Australia Limited (ASX: ERA)

Finally, the Energy Resources of Australia share price is lifting 2.8% to trade at 25.7 cents after the ASX-listed uranium producer dropped its half-year earnings today.

It posted an after-tax loss of $34 million for the six months ended June. That reflected lower sales volumes and higher non-cash costs. Its revenue from uranium sales also slumped 34% over the period to $35.3 million.

It comes after its Ranger Mine ceased operation in January 2021, meaning no uranium oxide was produced by the company last half. It also spent $80 million on rehabilitation activities at the Ranger Project Area over the half just been.

The post 3 ASX shares soaring on earnings updates appeared first on The Motley Fool Australia.

Earlier, the Tesserent share price was in the green, trading as high as 19 cents. But it has since backtracked and fallen into the red.

This comes on the back of Tesserent releasing its quarterly update today, reporting a jump in turnover and earnings before interest, tax, depreciation and amortization (EBITDA).

Tesserent grows revenue, EBITDA year on year

Key highlights from the company's unaudited earnings this quarter include:

• "Continuing growth for first three quarters of FY22", with an 82% gain in turnover and 148% jump in EBITDA this Financial Year to date (FYTD)
• For Q3 FY22, the company says it recognised $41.5 million in revenue, up 97% year on year (YoY)
• Organic growth (excluding acquisitions) recorded at 36% for both the third quarter and YTD
• Annual Recurring revenue (ARR) reaches 45% of annual turnover
• Further innovation investment of $1.1 million made in strategic partner Daltrey focusing on biometric security
• The Group's reported cash position is $10.0 million as at 31 March 2022

What else happened this quarter for Tesserent?

Third quarter revenue grew 97% YoY for Tesserent, made up of both organic sales growth and the impact of acquisitions.

Tesserent also recorded a net operating cash outflow during the period of $1.1 million. It puts this down to "an increase in debtors and unbilled WIP balance – driven by growth in the Group's workforce coupled with a seasonal step up in the level of consulting activity in Q3".

Aside from that, the group had grown its headcount to 404 by the end of the quarter, adding another 24 employees last quarter, and 96 employees this FYTD.

"The business is focused on recruiting and retaining key talent to continue to provide an
outstanding level of customer service to our clients, whilst continuing to grow our coverage in all
aspects of the Cyber 360 delivery to the market," Tesserent said.

Tesserent has also recently appointed Samantha Riddle to the role of Director of People and Culture (P&C) and Samantha has taken on leadership of the P&C corporate team as well as developing the P&C plan for implementation in FY23 across all the operating businesses.

What's next?

The company expects its earnings to be lumpy due to the seasonality of its business. Specifically, it says:

As highlighted in previous releases, earnings within the business are highly seasonal, and the profile of earnings is exhibiting a similar seasonality within the current year. This is expected to continue into the last quarter of FY22.

Aside from that, no specific earnings or sales guidance was provided for the coming periods in Tesserent's release today.

Tesserent share price snapshot

The Tesserent share price has fallen 22% in the last 12 months, however, it has held a 3% gain this year to date. Shares have also spiked more than 13% in the past month of trade.

The post Tesserent share price falls despite quarter of 'continued strong growth' appeared first on The Motley Fool Australia.

"G'day Fools. If you're like us, you're dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we'll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine."

The share price of cybersecurity provider, Tesserent Ltd (ASX: TNT) has been launching higher over the last week.

Its gains follow the release of the company's earnings for the first half of financial year 2022 and come amid rising concerns of cyber security threats amid geopolitical uncertainties.  

At the time of writing, the Tesserent share price is 17.7 cents, 1.14% higher than its previous close.

That's also 22% higher than where it closed last Tuesday – 14.5 cents.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1.3%. Though, it has fallen 0.1% over the last 5 sessions.

Let's take a look at what might be boosting the Tesserent share price lately.

What's driving the Tesserent share price lately?

It's been a big week for Tesserent and its share price after the company released its half-year earnings on Friday.

Over the 6 months ended 31 December, the cybersecurity and cloud services provider's revenue surged 52% to $43.9 million. Of that, 44% was reoccurring revenue.

At the same time, its earnings before interest, tax, depreciation, and amortisation (EBITDA) more than doubled to reach $5.6 million.

The Tesserent share price surged 15% on the back of its half-year results.

Commenting on its earnings, Tesserent chair Geoff Lord said the company is "mindful of the heightened level of cyber security risk that exists for Tesserent clients" due to Russia's invasion of Ukraine.

"We note that Tesserent has targeted capabilities to address these risks in its Cyber Enhanced Situational Awareness and Response capabilities," Lord continued.

On that note, the Tesserent share price is gaining alongside some international defence and cybersecurity stocks.

They're being boosted by expectations that spending in the sectors will rise as concerns of Russian cybersecurity attacks increase, according to reporting by the Guardian.

The Global X Cybersecurity EFT (NASDAQ: BUG) has risen 10.2% over the last week, with its stock currently trading at US$30.86.

Tesserent's gains also come after the Australian Cyber Security Centre (ASCS) warned organisations to "urgently adopt an enhanced cyber security position":

There has been a historical pattern of cyber attacks against Ukraine that have had international consequences

Malicious cyber activity could impact Australian organisations through unintended disruption or uncontained malicious cyber activities.

While the ACSC is not aware of any current or specific threats to Australian organisations, adopting an enhanced cyber security posture and increased monitoring for threats will help to reduce the impacts to Australian organisations.

The post Why has the Tesserent (ASX:TNT) share price rocketed 22% in a week? appeared first on The Motley Fool Australia.

The company reported increases in earnings and revenue, alongside the induction of three acquired businesses.

At the market close, the Tesserent share price was up 15.38% at 15 cents. To compare, the S&P/ASX 200 Information Technology Index (ASX: XIJ) closed up 8.14% today.

So what did the IT company report to make its share price skyrocket?

Tesserent share price surges on rise in earnings, revenue

The Tesserent share price surged today on the back of the half-year results for the period ending 31 December 2021. Key takeouts included (against the prior corresponding period):

• Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) up 102% to $5.6 million
• Turnover up 72% to $62.9 million
• Statutory revenue up 52% to $43.9 million

All in all, the company's annual recurring revenue increased by 44%, though no dividend was declared for the half year.

What else happened?

During the half, Tesserent underwent a branding and integration facelift — remodelling the company as "a single customer-facing brand".

Further, the IT company completed the acquisitions of three businesses — Loop Secure, Clarinet, and Pearson Corporation.

In order to fund these takeovers and "strengthen the balance sheet", the company successfully completed a $25 million capital raise during the period.

This has led to organic growth and a higher turnover, Tesserent said.

What did management say?

Commenting on the results that boosted the Tesserent share price today, executive chairman Geoff Lord:

The management team successfully executed its brand and business unit integration strategy – strengthening Tesserent's commercial position in the market by enabling the Group to enhance its value proposition to existing and new clients and improve gross margins and net margins reported across the business.

Given the significant events that are occurring in eastern Europe, we are also mindful of the heightened level of cyber security risk that exists for Tesserent clients. We note that Tesserent has targeted capabilities to address these risks in its Cyber Enhanced Situational Awareness and Response (CESAR) capabilities.

Tesserent share price snapshot

In the last 12 months, the Tesserent share price has dropped by 54%. It saw a 52-week high price of 33 cents at the end of July, after releasing a quarterly report for the period ending 30 June 2021. However, Tesserent shares hit a 52-week low of 13 cents just yesterday.

Tesserent shares have fallen 12% this year to date and 6% over the past month.

The company has a market capitalisation of $163.56 million.

The post Tesserent (ASX:TNT) share price rockets 15% as earnings, revenue soar appeared first on The Motley Fool Australia.

Some prominent ASX tech shares did even worse. Zip Co Ltd (ASX: Z1P) lost almost 9% at one point, while Block Inc's (ASX: SQ2) losses hit double digits.

Some tech companies unfortunately scheduled yesterday as the day to drop disappointing earnings reports. Appen Ltd (ASX: APX) and Life360 Inc (ASX: 360) were two such companies. The Appen share price and Life360 share price were both down by close to 30% at various points of the day.

The volatility continues today for ASX tech shares. But in a way that gives relief to some investors. As ASX 200 shares rebound today, ASX tech shares are leading the charge.

ASX tech shares lead recovery

At the time of writing, the ASX 200 is up a robust 0.45%. But the ASX 200 Information Technology Index is the powerhouse, up a whopping 8.1%.

Leading the charge is Block Inc, the new owner of Afterpay. Block reported its own earnings this morning and investors were mightily impressed, to say the least. The company is currently up an eye-watering 33.4%. Clearly, investors were relieved by Block's 62% rise in gross profits and its 86% surge in revenues.

Life360 has also been a strong performer today. Perhaps some investors thought things went too far yesterday, with Life360 shares now up 18.4%. Ditto with Appen, although investors are not quite as enthusiastic. Appen shares have gained 11% so far today, as have Tesserent Ltd (ASX: TNT) shares and Tyro Payments Ltd (ASX: TYR) shares.

But it's not just those shares. Almost every ASX tech share on the market is in the green today.

There's no real explanation we can give for these moves, other than to note that the tech sector is consistently one of the ASX's most volatile. It often loses more than the broader market on a down day and gains more on an up day. We saw that yesterday, and we seem to be seeing it today. Those earnings results are likely playing a role in share price movements, too.

So after a week that has probably given investors severe whiplash, it will be interesting to see what next week brings for ASX tech shares.

The post Back on the horse! ASX tech shares stage stunning comeback following sell-off appeared first on The Motley Fool Australia.

At the time of writing, the Tesserent share price is 18 cents, up 6.06%.

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.

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At the time of writing, Tesserent shares are fetching for 16.2 cents apiece, down 1.82%.

Tesserent strengthens cybersecurity solutions

Investors appear unfazed by the company's latest release, sending the Tesserent share price in negative territory.

In a statement to the ASX, Tesserent advised it has secured a cybersecurity partnership with international telecommunications company, Vocus.

Founded in 2008, Vocus is a specialist fibre and network solutions provider that operates in Australia and New Zealand. The company has over 30,000 kilometres of fibre network that is purpose-built and managed for business and government.

Under the deal, Tesserent will initially focus on delivering its Cyber 360 solutions to Vocus' 5,000-strong enterprise and government clients. This includes essential 8 programs, testing/assurance/red team services, and scaling up key security product controls and managed security services.

Recently, Tesserent cemented its leading position in the federal government cybersecurity solutions space with the acquisition of two businesses.

The new additions are expected to immediately integrate into Tesserent's ecosystem, particularly its North Security business. This area is tasked with leading the company's federal government team by delivering large multi-year projects.

Tesserent CEO, Kurt Hansen commented:

We are extremely pleased to be able to partner with Vocus on their cybersecurity initiatives with their enterprise clients. Increasingly critical infrastructure controls are coming under cyber-attack and we look forward to working with Vocus to improve their clients' cybersecurity resilience.

This partnership will enhance Tesserent's profitable organic growth through access to clients that are currently not being addressed by our current client facing team.

About the Tesserent share price

Adding to today's losses, the Tesserent share price has dropped by more than 50% in the last 12 months. A stark contrast to when the company's shares reached an all-time high of 44 cents at the beginning of January.

Based on today's prices, Tesserent presides a market capitalisation of roughly $200.22 million and has approximately 1.21 billion shares outstanding.

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At the time of writing, the Tesserent share price is up 1.21% today to 17 cents apiece.

What's dragging Tesserent down?

Investors seemed unimpressed by the company's efforts to boost its cybersecurity presence, sending the Tesserent share price south.

The first notable fall was on 19 November, when the company provided the market with a business update.

While the release highlighted a 372% increase in annual turnover against the prior year, investors shrugged off the good news. In addition, there were some organisational changes which saw a reshuffle of management personnel.

The release, along with the annual general meeting (AGM) later that day, failed to change investor thinking. Over the following 3 trading days, the Tesserent share price sank by almost 20%.

The other significant fall came on 6 December, despite no announcements from the company. Tesserent shares fell heavily, down 11% to a 52-week low of 15 cents. The trend, however, was quickly reversed when Tesserent announced the acquisition of 2 companies the next morning.

Tesserent shares rose 16%, with management noting that the latest purchase would cement its position as the leading provider of cybersecurity solutions.

Tesserent expects both additions to immediately integrate into its ecosystem. This is particularly the case with its North Security business, which leads the company's federal government team and delivers large multi-year projects.

Tesserent share price summary

Over the past 12 months, the Tesserent share price has continued its declining trend to post a loss of about 50%. The company's shares reached a 52-week high of 44 cents in January, before gradually treading lower throughout the year.

Tesserent commands a market capitalisation of roughly $203 million, with approximately 1.2 billion shares outstanding.

The post Why has the Tesserent (ASX:TNT) share price tumbled 12% in a month? appeared first on The Motley Fool Australia.

At the time of writing, the internet security services provider's shares are fetching 16.5 cents apiece, up 10%.

Tesserent cements leading position in cybersecurity solutions

Investors are fighting to get a hold of Tesserent shares following the company's positive update.

According to its release, Tesserent advised it has acquired Pearson Corporation and Claricent through two separate share purchase agreements.

Both companies were targeted due to their strong position in the federal government marketplace.

Based in Canberra, Pearson Corporation is an IT consulting firm that has demonstrated experience in information security management services. The company operates in both the public and private sectors, providing expertise in cybersecurity, Microsoft, Carbon Black, and Ivanti products.

Notably, its services have assisted in delivering Essential 8 compliance for Commonwealth entities around Australia.

Tesserent's other acquisition Claricent is a private Australian company that specialises in governance risk and compliance (GRC) services.

Both additions are expected to immediately integrate into Tesserent's ecosystem, particularly its North Security business. This area is tasked with leading the company's federal government team by delivering deliver large multi-year projects.

Tesserent is set 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 of both acquisitions is $32.93 million.

The amounts are due to be paid in two instalments. Around 50% of the enterprise value will be paid on completion which is slated for December 2021. The remaining 50% is to be paid on the finalisation of audited accounts, estimated sometime in September 2022.

Tesserent chair Geoff Lord welcomed the newly-acquired businesses, saying:

… These acquisitions cement our position as the leading ASX-listed provider of cybersecurity solutions and services into Federal Government and the leading provider of Essential 8 consulting services, as well as contributing to our annual revenue and adding significant recurring EBITDA to the Group.

Tesserent share price summary

Despite the company's latest announcement, the Tesserent share price has failed to take off in 2021, down more than 50%. The company's shares reached a 52-week high of 44 cents in January, before gradually declining during the year.

Based on today's price, Tesserent commands a market capitalisation of roughly $199 million and has approximately 1.21 billion shares outstanding.

The post Tesserent (ASX:TNT) share price leaps 10% on acquisition news appeared first on The Motley Fool Australia.

After dipping at the open, the Tesserent share price shot up 5% mid-morning before sinking back to its previous closing price of 20 cents apiece at the time of writing.

How is Tesserent performing in 2021?

In today's release, Tesserent advised it has achieved significant growth for the year-to-date period ending October 2021. This has led to an increase in turnover of 67% when compared to the prior corresponding timeframe.

Divisional earnings before interest, tax, depreciation and amortisation (EBITDA) growth jumped 150% over FY20, driven by targeted acquisitions.

In addition, Tesserent recorded a surge in annual recurring revenue (ARR), up 42% to October 2021. In the prior year, ARR grew at a rate of 30% in 2020.

The company declared a current cash position of $19.8 million as at 15 November. Net debt stood at $15.2 million.

Notably, Tesserent key customers include 43 companies within the ASX 100 list.

Management shuffle

Furthermore, the company has reshuffled its senior management team to align with its new go-to-market strategy.

According to the release, Kurt Hansen will take the reins as CEO, focusing on maximising organic growth and steering the business in the right direction.

Geoff Lord takes on the role of executive chair, and Julian Challingsworth will step down from the board to start his new position as chair of Tesserent Innovation.

Chief financial officer James Jones will assume broader responsibilities across mergers and acquisitions and investor relations. The company said Mr Jones brings a wealth of experience from his time served at leading accounting firms, Deloitte, and Ernst & Young.

About the Tesserent share price

The Tesserent share price has failed to take off in 2021, down 40% year to date, and has fallen around 45% over the past 12 months.

Tesserent presides a market capitalisation of roughly $242 million and has approximately 1.21 billion shares on its registry.

The post What's with the Tesserent (ASX:TNT) share price wobbles today? appeared first on The Motley Fool Australia.

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.

The post Why is the Tesserent (ASX:TNT) share price climbing 11% on Friday? appeared first on The Motley Fool Australia.

The company released an update after the market closed last night which outlined its plans for the future. However, the presentation hasn't been enough to protect the Tesserent share price today.

At the time of writing, the Tesserent share price is flat at 23 cents. However, it's been wobbling in and out of the red all day, recording an intraday low of 22 cents.

That's still a better performance than the broader market. Right now, the S&P/ASX 200 Index (ASX: XJO) is down 2% while the All Ordinaries Index (ASX: XAO) has fallen 1.9%.

Let's take a closer look at the security-as-a-service company's investor update.

Tesserent's investor update

Tesserent told investors its plans for the future include deepening its footprint in government, infrastructure, and financial services.

Currently, Tesserent provides internet security for 47 federal and state departments and agencies. It also looks after 8 of Australia's largest banks, 16 financial services firms, and 14 foreign banks. Their client list includes 43 companies in the S&P/ASX 100 Index (ASX: XTO).

Tesserent also notes that it believes the Australian cyber security market will expand to be worth $7.3 billion by 2024. The increase will be driven by greater cyber security risks, greater enterprise spending on cyber security, and changes to legislation.

Over the financial year 2022, Tesserent plans to increase the number of services it provides to each customer. It will also integrate acquisitions that will increase synergies and revenue growth, and expand its proprietary intellectual property.

It also wants to reduce its skills shortage gap and build its leadership position in education through the Tesserent Academy.

Tesserent share price snapshot

Despite the company's forward-thinking, the Tesserent share price has been tanking on the ASX lately.

It is currently 34% lower than it was at the start of 2021. This time last year, it was exactly as it is today at 23 cents.

The post Tesserent (ASX:TNT) share price struggles amid investor update appeared first on The Motley Fool Australia.

At the time of writing, shares in the cybersecurity and cloud services company are down 6.38% to 22 cents.

Tesserent share price dives on successful capital raising

Tesserent successfully raised approximately $25 million at an offer price of 21 cents per share.

This represents a 10.6% discount to its last traded price on Thursday, 23 September of 23.5 cents.

According to the company's announcement, the placement was "significantly oversubscribed" with strong support from new and existing investors.

The capital raising will issue up to approximately 119 million new shares, representing approximately 11.1% of the existing shares on issue.

The resulting dilution for existing shareholders and offer discount is likely weighing on the Tesserent share price on Tuesday.

Management commentary

Tesserent's co-CEO Julian Challingsworth commented on the capital raising, saying:

We are pleased at the success of this equity raising to support the enhancement of our core capabilities and operational footprint in strategic high growth locations with a focus on the federal government market.

What's the capital raising for?

It is understood that Tesserent will use the proceeds to fund strategic acquisitions and pay off deferred acquisition payments including:

• ~$6 million for the upfront cash component for Loop Secure
• ~$5 million for the deferred cash consideration and earn-out component of Airloom
• ~$11 million for the 40% cash consideration of strategic acquisitions under the acquisition strategy previously closed to market
• ~$3 million relating to planned investments and capital raising costs

Tesserent share price snapshot

The Tesserent share price is down 35% year-to-date.

This is despite the company successfully executing its aggressive acquisition strategy and delivering triple-digit revenue growth in FY21.

The post Tesserent share price slumps 6% following capital raise appeared first on The Motley Fool Australia.

What's the trading halt for?

The cybersecurity and networking solutions provider requested a trading halt on the basis of a capital raising to support pending acquisitions.

Tesserent shares are expected to remain frozen until Tuesday, 28 September or when the announcement regarding the capital raising is lodged.

The company had $14.8 million in cash and cash equivalents for the year ended 30 June 2021.

The Tesserent share price last traded at 23.5 cents on Thursday.

That's a lot of acquisitions

Tesserent is deploying an aggressive acquisition strategy to strengthen its cyber security capabilities in areas such as public and private sector consulting services and managed services.

Since the beginning of FY20, the company has acquired the following assets:

• Seer Security on 31 July 2020
• Airloom Holdings on 2 September 2020
• Ludus Information Security on 11 September 2020
• iQ3 on 11 November 2020
• Lateral Security Services (New Zealand) on 12 February 2021
• Secure Logic on 28 April 2021
• Loop Secure on 18 August 2021.

Tesserent share price going nowhere in 2021

The Tesserent share price has struggled to make headway in 2021. It is down 32% year to date to 23.5 cents.

Despite share price headwinds, the company has demonstrated a strong track record for successfully integrating its strategic business acquisitions, which in turn have strengthened its growth prospects.

In a statement on its preliminary FY21 results, Tesserent said it will continue to drive its acquisition strategy.

According to the statement:

There are also a number of potential acquisitions currently in review which if completed, will further add to the inorganic earnings growth and deepen the Cyber 360 model.

Tesserent delivered a bumper FY21 performance with revenue lifting 233% to $67.3 million.

Its normalised net profit after tax was $4.9 million. This is a big improvement on the $5.1 million loss in FY20.

The post Why the Tesserent (ASX:TNT) share price is frozen today appeared first on The Motley Fool Australia.

Over the last month, Tesserent's stock has fallen 22.41%. Right now, the Tesserent share price is 22.5 cents. This time last month it was 29 cents.

So, what spurred the cyber security company's share price to tumble? Let's take a look.

Tesserent struggles on the ASX

The Tesserent share price has been sliding lately despite the company posting strong financial year 2021 earnings and releasing news of an exciting acquisition.

The company released its results for financial year 2021 on 30 August.

Within them, it noted it had made a $4.9 million profit after tax and its revenue had been boosted 233% to reach $67.3 million.

However, the market showed indifference to Tesserent's seemingly successful 12 months. The Tesserent share price ended the day exactly where it started it, before plunging 11% lower the following session.

The market's cold reaction to Tesserent's FY21 results was the second time a seemingly positive announcement fell flat for the company in August.

On 19 August, Tesserent announced its plan to acquire Australian cybersecurity company, Loop Secure.

Despite lifting during the session in which the company announced its acquisition, the Tesserent share price closed exactly where it had finished the previous day's trade.

Tesserent plans to acquire Loop Secure for around $13.5 million, paying $9 million in cash and the rest in shares.

Tesserent share price snapshot

The Tesserent stock's recent slide has added to its ongoing woes.

Right now, the company's share price is 36% lower than it was at the start of 2021. It has also fallen 8% since this time last year. However, it is currently up 4.65% on the day.

The company has a market capitalisation of around $230 million, with approximately 1 billion shares outstanding.

The post Why is the Tesserent (ASX:TNT) share price down 22% in a month? appeared first on The Motley Fool Australia.

At the time of writing, shares in the cyber security company are trading flat at 27 cents .

Tesserent share price flat despite bumper FY21 performance

The Tesserent share price is off to a wobbly start on Monday despite marking significant growth and a pathway towards profitability in FY21. Key highlights include:

• Turnover surging 371% to $96.7 million
• Revenue lifting 233% to $67.3 million
• Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of $9.6 million (FY20: $2.8 million loss)
• Normalised net profit after tax of $4.9 million (FY20: $5.1 million loss).

What happened to Tesserent in FY21?

FY21 marked a year of significant growth for the cyber security company.

Tesserent successfully executed its strategy to strengthen its core Cyber 360 capabilities and acquire complementary businesses to expand product and service offerings to key clients and sectors.

During the year, Tesserent acquired and integrated six companies including:

• Seer Security on 31 July 2020
• Airloom Holdings on 2 September 2020
• Ludus Information Security on 11 September 2020
• iQ3 on 11 November 2020
• Lateral Security Services (New Zealand) on 12 February 2021
• Secure Logic on 28 April 2021.

Tesserent achieved all set financial objectives in FY21 including a turnaround to achieve quarter-on-quarter EBITDA growth from a quarterly loss-making position in the prior year and a turnover run rate of $150 million.

Contrary to its positive FY21 performance, the Tesserent share price is down 22.8% year-to-date and flat for the past 12 months.

Management commentary

In a letter to shareholders, Tesserent chair Geoff Lord wrote:

FY21 saw the group achieve exceptional growth – both organically through its execution of the Cyber 360 go-to-market strategy and through successful completion and integration of six acquisitions – with the acquired businesses adding public and private sector consulting services, managed services, specialised product expertise, plus cloud, defend and detect services to the Tesserent offering.

Pleasingly, the FY22 year has started off well for the group with the business delivering above budget performance and a number of wins that will provide a foundation for continued strong organic growth during the current year.

What's next for Tesserent

It's been a challenging past 12 months for the Tesserent share price.

Management said that it would continue to focus on creating shareholder value by "building on Tesserent's position as Australia's #1 ASX-listed cybersecurity provider".

Tesserent highlighted a number of "important goals" over the new financial year, centred around acquisitions, the expansion of proprietary intellectual property and driving market share in key sectors.

Lord said the acquisition of Loop Secure would be completed in September. "There are also a number of potential acquisitions currently in review which if completed, will further add to the inorganic earnings growth and deepen the Cyber 360 model," he said.

In addition, the company pointed at international expansion opportunities with a focus on Australia's key five eyes allies, consisting of the United States, United Kingdom, New Zealand and Canada.

The post Tesserent (ASX:TNT) share price fails to fly despite 230% revenue growth in FY21 appeared first on The Motley Fool Australia.

The cybersecurity and networking solutions provider's shares were up as much as 7% to 29 cents at one stage today.

When the Tesserent share price hit that level, it meant it was up 26% since this time last year.

Why is the Tesserent share price charging higher?

Investors have been bidding the Tesserent share price higher today after it announced an acquisition.

According to the release, the company has signed a share purchase agreement to acquire cybersecurity company Loop Secure for ~$13.5 million. This comprises $9 million in cash and the balance in shares.

Loop Secure is an Australian cybersecurity company providing Managed Security Services, Governance, Risk & Compliance (GRC), and Offensive Security services.

The release notes that it operates a Security Operations Centre located in Melbourne, working predominantly with a range of international and domestic enterprises.

Why acquire Loop Secure?

Management notes that Loop Secure's services and solution offering is a strategic addition to strengthen Tesserent's Cyber 360 capabilities. It sees immediate synergies and opportunities to leverage its corporate relationships and skills within the company.

Loop Secure's unaudited FY 2021 turnover was $18 million, with operating earnings of $2.25 million. The acquisition is expected to be immediately earnings, cash flow and earnings per share accretive. The latter appears to be giving the Tesserent share price a big boost today.

Tesserent's Chairman, Geoff Lord, commented: "The addition of Loop Secure to the TNT group is a welcome one, cementing our position as the leading ASX-listed provider of cybersecurity solutions and services in ANZ and as well as contributing to our annual turnover and adding significant recurring revenue to the Group."

Loop Secure's Chairman, Adam Davenport, added: "After more than 15 years as a leading cybersecurity firm, I am delighted Loop Secure will become part of the Tesserent Group. The transaction provides Loop with immediate access to substantial resources and new opportunities and will allow us to continue our strong growth in the key cybersecurity domains of monitoring, consulting and solutions."

The post Why the Tesserent (ASX:TNT) share price is surging 7% higher today appeared first on The Motley Fool Australia.