Sydney-based advisory and technology solutions provider Atturra (ASX: ATA) is quickly delivering on promises made to shareholders, announcing today that the group will acquire local IT firm ComActivity for $9 million – marking the company’s third buyout in a matter of weeks.
The news comes one week after Atturra completed the acquisition of Melbourne-based digital content management company Chrome Consulting for $5 million, which was followed by the NZD$20 million purchase of New Zealand-based information and communications firm Plan B.
The latest deal will see ComActivity snatched up for $9 million in cash, with an additional $5.5 million on the table subject to the company meeting performance targets based on audited EBITDA targets for FY25 and FY26.
Founded in 2005 by Jason Levick and Mats Gunnarsson, Sydney-based ComActivity offers end-to-end supply chain technology solutions, system integration and digital transformation services for logistics companies.
ComActivity has worked on hundreds of successful projects involving Infor ERP - a software platform that allows businesses to manage key operations like finance, supply chains and manufacturing. Post-acquisition, Atturra will absorb around 40 staff spread across Australia and New Zealand.
"We are thrilled to join forces with Atturra, a leading IT solutions provider whose vision and culture align very tightly with ours,” Levick says.
“Over the years, ComActivity has established itself as a leading solutions provider of Infor M3 solutions, driving success for our clients specifically in manufacturing, food and beverage, distribution, equipment and asset-intensive industries.
“This partnership will amplify our ability to deliver world-class solutions and create greater value for our clients.”
To help fund the string of buyouts, Atturra has already completed the first stage of its capital raise, securing $30.8 million. The second stage of the capital raise has been upsized to $39.7 million from $34 million. The move still requires shareholder approval, which will be decided at an Extraordinary General Meeting (EGM) scheduled for 19 December.
Meanwhile, the share purchase plan (SPP) for up to $6.05 million closed yesterday, with the results to be announced next week.
“Atturra's strategy is built with a strong focus on both technology and industry specialisation, making the acquisition of ComActivity a perfect fit. Atturra sees manufacturing as a key industry within the company’s portfolio,” Atturra CEO Stephen Kowal says.
“It is an important contributor to the Australian economy, and we have a great loyal client base in this industry. With ComActivity on board, our manufacturing industry-focused ERP technology capabilities expand significantly, allowing us to deliver cutting-edge solutions powered by Infor’s M3 product suite.
“This is an exciting step in Atturra’s strategy of picking leading technologies, and focusing on being a market leader, ensuring the company can offer best-in-class solutions to its clients.”
Founded in 2014 by Athol Hill and Daniel Jewell, Chrome Consulting specializes in deploying OpenText - a suite of software tools designed to organize, store, and access digital information - particularly for clients already using SAP (Systems, Applications & Products in Data Processing) enterprise software. The company has worked with more than 15,000 users across 120 countries, working with federal and state government agencies to mining companies to utilities firms.
According to ASIC records, Chrome Consulting CEO Mark Frear is also listed as company director alongside the co-founders. Under the agreement with Atturra, Chrome Consulting could earn an additional $2.5 million in cash if it meets performance hurdles based on audited EBDITA targets for FY25 and FY26.
Meanwhile, Auckland-based Plan B operates a national network of five primary data centres (DCs) across New Zealand’s North and South Islands. Atturra has acquired more than 1,000 clients across ANZ through the buyout, with Plan B also eligible for an additional NZD$4.5 million in cash subject to meeting performance targets based on EBITDA targets for FY25.
While the $30.8 million Atturra raised in the first tranche is less than the upfront costs of its recent acquisitions before considering future earnouts, the company remains confident in its financial position as it looks toward the second tranche.
The transaction of ComActivity is expected to be completed around 31 December 2024 subject to the satisfaction of conditions in the Share Sale Agreement (SSA).
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