Tesserent Share Price Pops 11% Higher on Fresh Acquisition (ASX:TNT)

The share price of small-cap software firm Tesserent Ltd [ASX:TNT] is up 11% today.

A decent lift higher, following the stock’s explosive performance in 2020 so far.

After reaching a low of 3 cents per share in late March, Tesserent has been on tear since. Peaking at 29.5 cents per share earlier this month (10 August).

Currently it is sitting at 25 cents per share. Slightly below that recent peak, but up marginally in today’s trading.

As for why, well it was all thanks to Tesserent’s new acquisition of Airloom…

Cyber defenders unite

Both Tesserent and Airloom are cyber security outfits. With the former providing ‘enterprise-grade’ cyber and networking security solutions.

Needless to say, it’s a service that is becoming increasingly in-demand. Especially with the lockdown putting even more strain on digital channels, and rumours/reports of cyber-attacks.

Crucially though, Tesserent has built itself from the foundations of several businesses.

Having previously acquired Pure Security, Rivium, North, and Seer. Each of which have added to the firm’s capabilities and offerings. Allowing them to boast a robust, ‘full service’ offering.

Now, Airloom will be yet another string added to Tesserent’s bow.

Bringing their cloud-focused security architecture to the table. Expertise that net Airloom some $27 million in gross revenue for the 2020 financial year. As well as $2.7 million in earnings pre-tax.

Needless to say, that strong cash flow will be a boon for Tesserent. With plenty of upside for future growth to come as well.

According to Tesserent, this has lifted their gross revenue run rate to $80 million per month. A fantastic result that puts them on track to achieve their goal of a net profit for the current financial year.

Not to mention, bringing in some top-tier talent, as TNT Chairman Geoff Lord notes:

We’re extremely pleased to welcome Chris Hagios, Malcolm Salameh, and Adrian Noblett to the Tesserent family. The Airloom management team enjoy a reputation second to none in the cybersecurity market, and is a real boost to our operations, particularly in Sydney where we will look to improve our already strong reputation.

For shareholders, it is no doubt a positive sign of what is hopefully more good news to come. The latest win for a company that has thoroughly impressed this year.

Tech boom, means cybersecurity demand

Fortunately for Tesserent, the broader tech boom has played perfectly into their hands.

As I mentioned earlier, the demand for digital services is booming. Especially in the midst of harsh lockdowns for parts of the country.

This has and will likely continue to drive demand for cybersecurity. Both physically and digitally.

That should ensure that Tesserent’s future is in good stead. Or at least, it would seem that way.

After all, interest in tech and futurism stocks is booming.

You can learn why in our report on ‘Three Small-Cap Stocks Set to Explode’. In it we showcase three cutting-edge investments that are potentially on the brink of major breakthroughs. All of which could benefit from the broader tech boom.

For the full report, including the names of the three stocks, click here.


Ryan Clarkson-Ledward,
For Money Morning

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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