<< Back to Research archive

Published on: December 2, 2021

$2.9m funding package for Device Authority

Tern’s portfolio company Device Authority (DA) has received a US$1.25m strategic investment from Venafi Inc, a leader in providing machine identities, especially in a data centre setting. This fits well with DA’s ‘network edge’ device management and deployment skills. Major US private equity firm Thoma Bravo recently invested in Venafi, and we assume that it is therefore supportive of Venafi’s investment in DA. The Venafi strategic move is part of a US$2.91m funding package for DA, which includes a US$1.25m investment from Tern and US$0.41m from existing DA shareholders Alsop Louie Partners and a Samenuk Family Trust. Whilst the valuation is flat at 47c per share, we believe that this new capital structure validates and updates the Tern in-price. Equally positively, DA’s capital structure has been simplified with the conversion of loan notes into equity and a change in rights for certain classes of shares. As a result, Tern’s holding in DA equity has decreased from 56.7% to 53.8%, with a book value of US$19.8m (approximately £14.8m).

Related Content