Tesserent Limited’s acquisition of Secure Logic
We acted as financial advisor to Secure Logic on the sale of its managed security services business to Tesserent.
$22 million | April 2021
We acted as financial advisor to the shareholders of TrustGrid and AttackBound on the sale of a 25% interest to Tesserent.
$6 million | June 2021
Company Overview
Founded in 2012, Secure Logic is a leading Australian Managed Security services firm, headquartered in Sydney. The firm operates a 24 hour-7 day Security Operations Centre located in Sydney, working predominantly with NSW State Government and Federal Government departments and agencies, as well as a range of international and domestic corporate and financial institutions. Secure Logic also has additional sales offices located in Singapore, Kuala Lumpur and Bangalore.
Aside from its managed security and cyber threat solutions, Secure Logic is developing proprietary software solutions for specific clients including TrustGrid, a blockchain-based identify verification platform and AttackBound, an artificial intelligence-based cyber threat platform.
Background
VCF Capital was engaged as exclusive financial advisor to Secure Logic to facilitate the sale of Secure Logic’s managed security and cyber threat business and raise capital to finance the growth of TrustGrid and AttackBound as stand-alone cyber-technology product companies.
Transaction Summary
On 30 April 2021, Tesserent Limited (Tesserent) acquired Secure Logic’s Managed Security Services business for $22m funded by a mix of cash and Tesserent shares.
Secure Logic’s services and solution offering was of strategic importance to Tesserent, enabling the Group to strengthen its position as a leading provider of Government-focused cyber security solutions and services in Australia and New Zealand.
As part of the transaction, Tesserent also established a strategic partnership with TrustGrid and AttackBound to distribute their respective cyber security products across the Tesserent customer base with Tesserent subsequently investing $6m for a 25% interest in both TrustGrid and AttackBound in June 2021.
Outcome
VCF Capital introduced Secure Logic to Tesserent interest on a matched basis to facilitate the sale of Secure Logic’s managed security business to enable the founder of Secure Logic to turn his focus and efforts to TrustGrid and AttackBound.
The investment by Tesserent in TrustGrid and AttackBound provided additional growth capital for both businesses on a stand-alone basis whilst providing a cornerstone strategic partner able to distribute the products across its well-established customer base in Australia and New Zealand.