Tern To Buy Data Security Software Firm Cryptosoft In Share Deal

Mon, 15th Sep 2014 08:18

LONDON (Alliance News) - Tern PLC shares jumped higher in early trade on Monday after the company said it would acquire data security software business Cryptosoft Ltd.

Under the terms of the deal, Cryptosoft owner Jon Penney will be allotted 1.9 million shares in cloud and mobile sector-focused investment company Tern, along with warrants to subscribe to a further 396,252 shares across two tranches.

In addition, Tern is to invest GBP300,000 in Cryptosoft to provide working capital to the company and allow it to accelerate its growth.

Shares in Tern were up 5.4% on the back of the deal to 1.85 pence. They had been up as much as 15% earlier in the morning. At their current price, the 1.9 million Tern shares are worth GBP3.5 million.

Tern will hold a 95% stake in Cryptosoft under the deal, with Penney and other employees to retain a 5% stake in the company.

Cryptosoft made no profit or loss in the year to March 31 and holds assets totalling GBP28,000.

Tern director Al Sisto, who becomes chairman of Cryptosoft as part of the deal, said: "I believe Cryptosoft offers real solutions to fast growing markets that require data security; and there are no effective competitive products. The opportunities for Cryptosoft are very significant worldwide."

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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