Australian cybersecurity company Tesserent has acquired the managed security services business of Secure Logic for $10.75 million in cash and over 42 million shares, according to a prepared statement. Secure Logic's Executive Chairman Santosh Devaraj and Managing Partner Deepak Singh are integrating the company's managed security services business into Tesserent's government practice group and ongoing operations.
This is technology M&A deal number 232 that MSSP Alert and sister site ChannelE2E have covered so far in 2021.
Secure Logic will leverage the state and federal government relationships and capabilities within Tesserent's government group, the companies said. The acquisition provides cross-sell opportunities for Secure Logic to existing Tesserent customers and vice versa.
In addition, Secure Logic's managed security services business strengthens Tesserent's position as the "leading provider of government-focused cybersecurity solutions and services in Australia and New Zealand," Tesserent Chairman Geoff Lord stated. It is expected to help Tesserent reach its $150 million turnover annualized run rate goal for fiscal year 2021.
A Closer Look at Secure Logic's Managed Security Services Business
Secure Logic's managed security services are designed to reduce infrastructure costs and increase scalability, the company noted. They include:
- Advanced Cyber Defense: Offers content, data, endpoint and network security capabilities
- Cloud Strategy: Enables organizations to set up, manage and secure private, public and hybrid cloud environments
- Secure Compute Platform: Provides a private cloud solution for security monitoring, threat detection and vulnerability management
Secure Logic's managed security services business is expected to record strong revenue and earnings in FY21, Tesserent stated. It reported $9 million in revenue in FY2020.
Also, Secure Logic's managed security services business delivers $4.2 million earnings before interest, taxes, depreciation and amortization (EBITDA), Tesserent indicated. It generates revenue from recurring multi-year annuity-based contracts based on proprietary solutions.