Guess which tiny ASX tech share is skyrocketing 150% today

The Tesserent Ltd (ASX: TNT) share price has exploded higher on Tuesday morning.

At the time of writing, the ASX tech share is up 150% to 12.2 cents.

Why is this ASX tech share rocketing higher?

Investors have been scrambling to buy the cybersecurity company’s shares today after it announced that it has accepted a takeover offer from Thales Australia.

According to the release, the two parties have entered into a scheme implementation deed that will see Thales Australia acquire 100% of the share capital in Tesserent by way of a scheme of arrangement for 13 cents per share in cash.

This represents a significant premium of 165.3% to the ASX tech share’s last closing price of 4.9 cents per share. It values Tesserent at $232 million on an enterprise value basis.

Board recommends takeover

Tesserent’s Board unanimously recommends that shareholders vote in favour of the share scheme in the absence of a superior proposal and subject to the independent expert’s report.

Each Tesserent director intends to vote the shares held or controlled by them in favour of the proposed share scheme. Once again, this is in the absence of a superior proposal and subject to the independent expert’s report.

The agreement is also subject to foreign investment review board and shareholder approval, as well as other customary conditions.

Tesserent’s chair, Geoff Lord, commented:

The Share Scheme represents a significant premium to Tesserent’s recent share price, reflects an enterprise value of $232 million (up 35 times from $6.6 million as at 31 December 2019), delivers certainty of value and provides opportunity for shareholders to realise their investment in full for cash. Furthermore, the Share Scheme enhances outcomes for our customers, suppliers, and staff.

Tesserent’s customers are expected to benefit from Thales’ enhanced product suite, global service capabilities and the acceleration of Tesserent’s existing growth and customer service strategy. As a result of the Share Scheme, Tesserent staff are further expected to have increased opportunities to develop new skillsets and access to new networks including international mobility to further advance and grow their careers.