Tern PLC's (LON:TERN) tie up with global encryption specialist DigiCert underlines the traction its data security product is receiving.
The market appears to have been been catching on as well in recent weeks. Shares in the the tech investor are up over 37% since the end of July, now worth 11p.
Today's announcement revealed that its Internet of Things (IoT) subsidiary Device Authority had struck a strategic tie-up with global security and aunthentication firm DigiCert.
Utah-based DigiCert's managed PKI (Public Key Infrastructure) services are used by more than 115,000 of government, finance, healthcare, education, and Fortune 500 organisations.
Tern product to be incorporated into DigiCert's portfolio
Speaking to Proactive Investors, executive chairman of Tern, Angus Forrest, said global player DigiCert Inc had built up its systems with the old technology.
"Now, IoT (The internet of Things) has arrived and people are facing a number of challenges, particularly the scalability of their soluition and Device Authority's product provides scalability to its customers," he said.
He explained the tie-up with DigiCert takes Tern into a big and established sector, and that the Device Authority product will be added to the DigiCert portfolio to be made available to large customers.
IoT essentially allows devices and machines to be networked and communicate with each other so data can be collected.
Security and protection of data so that only the right people access it is clearly paramount.
The process of onboarding devices into an IoT application must be securely controlled which is where the Device Authority product will come in.
Device Authority purchase a boost
The group's acquisition this April of Device Authority by its cyber encryption specialist Cryptosoft has been a big success.
In late July, Tern reported its total assets as at end June (the half year) stood at £7.5mln compared to £1.2mln at the same time in 2015.
The pre-tax profit was £4.5mln versus a loss of £87,534 in the six months to June 30, 2015.
The group's cyber arm saw strategic alliances struck with five groups since the beginning of 2016, including with computer titans Dell and Intel.
The merger of the two groups (Cryptosoft and Device Authority) led to around a 20% reduction in overheads, Tern revealed, while commercial contracts are now increasing in number and size.
In March, Cryptosoft bagged, significantly, a contract with cyber-security colossus Semantec to deliver secure access and storage of data across connected devices.
Tern has pointed out that when Cryptosoft was acquired in September 2014, it consisted of a piece of advanced software and a team of three engineers.
"In the 12 months since the new management team was installed, it has grown into an international business with bases in the UK and the USA, it has established strategic partnerships.”
Shares in Tern added over 14% to 11p each.