French conglomerate Thales is set to acquire Tesserent, Australia’s largest publicly traded cybersecurity company, in a $119.1 million deal. Thales aims to expand its cybersecurity services in the Oceania market and accelerate its cybersecurity development roadmap.
With the acquisition, Thales plans to establish itself as a leader in cyber defense in Australia and New Zealand, offering sophisticated cybersecurity solutions to midsized and enterprise-level organizations in sectors such as government and defense.
Tesserent, founded in 2015, employs 435 people and generated $125.1 million in revenue in 2022. The proposed deal has already boosted Tesserent’s stock, reaching its highest level since January. Thales intends to acquire all outstanding shares of Tesserent stock at $0.88 per share and will retain the brand when serving the Australian and New Zealand markets.
Thales has a strong presence in cybersecurity, with a team that generated $1.62 billion in sales in 2022, focusing on areas such as data security, identity and access management, and risk assessment. The acquisition of Tesserent will enable Thales to leverage its services and skills to address the growing cybersecurity needs in Australia and New Zealand, particularly in the government and defense sectors. The deal is subject to approval from Tesserent shareholders and the court, with the aim of closing in the second half of 2023.
Both Thales and Tesserent have utilized acquisitions to expand their cybersecurity portfolios. Thales acquired European customer identity and access management supplier OneWelcome, as well as other companies, to provide cybersecurity services across multiple countries.
Tesserent has also made strategic acquisitions in the cybersecurity space since 2019. The acquisition of Tesserent by Thales is expected to bring mutual benefits, including an enhanced product suite and global services capabilities, while providing Tesserent staff with increased opportunities for growth and development.
