LONDON - Tern Plc (AIM:TERN), an investment company focused on Internet of Things (IoT) technology businesses, has announced the completion of a $3.3 million funding tranche for its portfolio company Device Authority Limited. This second tranche, contributed by Ten Eleven Ventures, was finalized following Device Authority’s continued positive performance, which has led both its board and the investors to deem the completion timely for supporting the company's growth momentum.
The investment, originally scheduled for December 27, 2023, was deferred due to Device Authority's strong performance, with an option to finalize by December 31, 2024. With the completion of this tranche, Tern's ownership in Device Authority has decreased from 30.0% to 25.3% of the company's equity, before any dilution from share options. This stake is valued at an unaudited book value of approximately $5.4 million, based on the issue price from the fundraising announced last year.
David Palmer, General Partner of Ten Eleven Ventures, expressed satisfaction with Device Authority's progress and their investment journey. Tim Eades, Chair of Device Authority, remarked that the funding marks a significant milestone and is expected to boost sales and business acceleration, allowing the company to realize its full potential.
Device Authority is recognized as a global leader in Identity and Access Management (IAM) for IoT, particularly in the automotive, medical device, and industrial sectors. Its KeyScaler™ platform offers comprehensive lifecycle management for IoT devices, including zero-touch provisioning, authentication, credential management, policy-based encryption, and secure updates.
Despite the positive developments, Tern has indicated that the profit reported in Device Authority's statutory accounts for the year ending December 31, 2023, should not be considered representative of the company's current business and trading performance. The announcement is based on a press release statement and provides an update on the investment and progress of Device Authority as part of Tern's portfolio.
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