Investor Alceon buys majority stake in Microsoft specialist Engage Squared
Melbourne-based Microsoft specialist Engage Squared has sold a majority stake to investment management firm Alceon to further fuel its Asia Pacific expansion and deepen its AI capabilities.
The capital boost comes as Engage Squared celebrates its twelfth anniversary, having since grown to a team of around 170 consultants and technicians focused on the Microsoft suite and spread across eight offices in Australia, New Zealand, and Japan.
The purchase – made for $36 million according to AFR sources – is the first in the investment firm’s $100 million Private Equity Access Fund, and follows Alceon’s sale of IT and managed services firm efex to Advent Partners just under a year ago.
“Engage Squared is in the strongest position we’ve ever been in, and this investment is about accelerating that momentum,” said co-founder Alastair Cashen, who has been appointed group CEO. “Alceon’s track record of partnering with high-growth businesses, combined with our deep expertise, gives us the opportunity to invest further in our people, capabilities, and customers.”
Cashen co-founded the firm in 2014 alongside Justin McPhee, chief operating officer Tom Hiscutt, and Stephen Monk, the latter who will now depart while Claudia Piscitelli, previously chief experience and marketing officer, has been appointed executive general manager for Australia. One time Deloitte HR manager Samantha Manners has also recently joined as head of people & culture.
The consultancy – a multiple Microsoft Partner of the Year winner and official Copilot specialist – groups its services portfolio around AI readiness & implementation, agentic build & governance, business applications, data security, information management, and managed support, but will now look to expand its capabilities along with its geographical reach through potential acquisitions.
“Engage Squared sits at the intersection of two themes where we have strong conviction: the Australian lower mid-market and enterprise adoption of AI,” said Alceon head of private equity, Zac Midalia. “The business has established a commanding position within the Microsoft ecosystem, and there is a significant opportunity to invest both organically and through targeted acquisitions.”
While continuing to accelerate since its sale, efex acquired more than half a dozen bolt-ons under Alceon’s three-and-half-year watch, with its valuation over that time reported to have climbed from roughly $50 million to as much as $200 million. Advisors on Alceon’s latest purchase included Alvarez & Marsal, which provided financial and tax due diligence support.
Cashen concluded: “Every day we help some of APAC’s leading organisations turn AI ambition into real business outcomes, moving beyond experimentation to enterprise-scale adoption and transformation. We believe AI represents the most significant technology shift of our generation., and as demand continues to grow, this partnership positions Engage Squared to expand our impact.”
SCD Advisory acted as the exclusive buy-side adviser to Alceon.
