"This acquisition would enable Thales to accelerate its cybersecurity development roadmap and expand its footprint in Australia and New Zealand," Thales said in a statement.

With 500 employees and turnover last year of Aus$185 million (US$125 million), Tesserent is one of Australia and New Zealand's largest cybersecurity companies, it said.

"Together we will address the growing cyber needs in our country, including those of the Australian government and defence sectors," Tesserent CEO Kurt Hansen said in the statement.

Tesserent, which will continue to operate under its own name, "will become the lead cybersecurity offering of Thales Australia and New Zealand", according to the French group.

For Thales, which generated 1.5 billion euros (US$1.6 billion) in cybersecurity sales in 2022, the acquisition will strengthen its presence in Australia where it is already one of the country's main defence manufacturers.

The move furthers Thales' expansion in the cybersecurity sector, following its purchase last year of Spain's S21sec, Luxembourg's Excellium and the Dutch company OneWelcome.

The proposed acquisition, recommended by Tesserrent's board of directors, is subject to approval by shareholders, the Australian federal court and the usual regulatory approvals.

The transaction is expected to be finalised during the second half of 2023, Thales said.

mra/mtp/dan

THALES