Thales, a Paris-based global leader in technology solutions, has announced its planned acquisition of Melbourne-based cybersecurity firm, Tesserent. The deal, valued at $119.1 million, seeks to bolster Thales’s cybersecurity offerings and expand its operations in Australia and New Zealand.
Thales aims to create an Australia/New Zealand cybersecurity hub, prepared to defend against increasing cyber threats to national infrastructure. Jeff Connolly, Thales Australia CEO, expressed optimism about the acquisition, highlighting how the integration of Tesserent’s team will provide access to global expertise and significantly enhance their cybersecurity offering.
Tesserent, founded in 2015, boasts an impressive record in delivering cybersecurity services to midsized and enterprise-level organizations in verticals including government and defense. With revenue figures reaching $125.1 million in 2022 and over 400 employees, Tesserent’s potential contribution to Thales’s operations is clear. The deal also spiked Tesserent’s share value to its highest point since early 2022, and Thales plans to retain the Tesserent brand for its Australia and New Zealand operations.
Key to Thales’s strategic plan is extending Tesserent’s service skills to existing customers in Australia and New Zealand, capitalizing on the burgeoning growth in the region’s cybersecurity market. Tesserent CEO Kurt Hansen echoed this sentiment, viewing the transaction as an excellent opportunity to address the growing cybersecurity needs in Australia and New Zealand.
The acquisition, backed unanimously by Tesserent’s board, hinges on shareholders and court approval and is expected to be finalized in the second half of 2023. On its completion, Tesserent’s customers stand to benefit from Thales’s robust product suite and global service capabilities, leading to accelerated growth. Tesserent staff also look to gain from increased opportunities to acquire new skills and access new networks, including international mobility.
While the acquisition awaits a vote from Tesserent shareholders and court approval, Tesserent must retain at least 85% of its key management leading up to court approval. However, the deal doesn’t include a “go-shop” period allowing Tesserent to entertain offers from other interested parties. If the deal falls through due to any actions from either party, a breakup fee of $1.8 million is due.
The acquisition represents a significant step in the global cybersecurity strategy for both Thales and Tesserent. Thales had previously expanded its cybersecurity capabilities with the acquisition of OneWelcome and other firms, while Tesserent had purchased several companies since 2019 to boost its cybersecurity portfolio.
With this acquisition, Thales aims to consolidate its leadership in the cybersecurity landscape, providing robust defenses for critical infrastructure and multinational corporations. As cyber threats continue to evolve, acquisitions like this will play a pivotal role in firms’ capabilities and geographic expansion in the cybersecurity domain.