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Tempest Security: Securing a strong foothold in the US - SEB

Tempest Security has announced the acquisition of US-based Dynamic Security Solutions for a price of USD 2.9m (USD 3.275m inc. earn-outs), of which USD 2.15m paid in cash and USD 0.75m in new shares. In 2021, the company reported revenue and adj. profit of USD 2.3m and USD 0.725m, respectively. Hence, the price corresponds to a 2021 multiple of c. 4x profits (4.5x inc. earn-outs). We expect the acquisition to add c. 6% and >20% to our 2022 revenue and EBITDA forecasts.

Tempest Security has announced the acquisition of US-based Dynamic Security Solutions for a price of USD 2.9m (USD 3.275m inc. earn-outs), of which USD 2.15m paid in cash and USD 0.75m in new shares. In 2021, the company reported revenue and adj. profit of USD 2.3m and USD 0.725m, respectively. Hence, the price corresponds to a 2021 multiple of c. 4x profits (4.5x inc. earn-outs). We expect the acquisition to add c. 6% and >20% to our 2022 revenue and EBITDA forecasts.
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