Listed cybersecurity firm Tesserent (ASX: TNT) is poised to acquire the security division of ICT consultants PS&C for $16 million.
The acquisition will make Tesserent Australia's largest listed dedicated cybersecurity business, with more than $30 million revenue forecast for FY20.
PS&C Security was created through the merger of four leading security firms: Pure Hacking, HackLabs, Certitude and Securus Global.
The integration of PS&C's cybersecurity assets is part of Tesserent's Cyber 360 Strategy and will give Tesserent full cybersecurity capabilities including security advisory, penetration testing, deployment and management of security infrastructure and secure application development.
The acquisition will also increase Tesserent's global footprint to include Australia, Asia and the UK.
The listed company is fully funded for the proposed acquisition by way of a $7 million converting note committed by a group of existing shareholders, and a $3 million acquisition facility provided by PURE Asset Management.
"The acquisition of the PS&C Security business is a natural fit for Tesserent, with numerous synergies between the two groups that we expect will enable us to provide a comprehensive cybersecurity offering to our current and prospective customer base," says Tesserent managing director Julian Challingsworth.
"The PS&C Security business brings with it some of the best minds in the cybersecurity sector in Australia and is a key facet of our comprehensive strategy that we expect to deliver excellent shareholder value moving forward."
The acquisition still requires shareholder approval, the details of which will be provided at a future time.
Shares in Tesserent are up 4.35 per cent to $0.048 per share at 11.48am AEST.
Business News Australia