Cyber security and networking solutions group, Tesserent, announced an investment into biometric security firm Daltrey. The Sydney-based Daltrey’s biometric technology enables an organisation’s users to prove who they are quickly and securely in both digital and physical scenarios without the need for passwords or swipe cards.
Tesserent is initially investing $600K for an initial stake, with a follow-on investment of a further $1.1 million upon successfully meeting key growth targets. This will give Tesserent an initial 7% shareholding with further options to invest an additional $10 million subject to the performance of the company and future capital requirements.
Daltrey will initially work with Tesserent’s Canberra based team to deliver sales into the Federal Government market who are actively evaluating increased adoption of biometric solutions.
Tesserent will fund the initial cash consideration fully from existing reserves.
Tesserent’s Innovation business was founded by the company to invest in high growth cyber-IP opportunities where the investee has revenue from existing customers and a solution that clearly aligns with Tesserent Cyber 360 strategy. The company also aims to take small initial shareholdings with the option to scale up the level of investment when the investee delivers on their growth targets; and Tesserent can secure premium distribution rights to take the new solutions and products to market.
Julian Challingsworth, TNT’s co-CEO, commented; “We’re very excited about the growth in the biometric security market. We note some US private equity organisations have been investing in the market with a recent investment of $543M into Transmit Security, supporting our belief that biometrics will play a key role in security organisations’ data and systems in the near term.”