ASG Group acquires WA-based Microsoft consultancy Velrada

06 March 2022 2 min. read
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Digital strategy and transformation consultancy ASG Group has acquired Perth-based Microsoft solutions and services partner Velrada, bringing to an end the latter’s planned ASX listing.

“Velrada’s acquisition allows us to boost our capacity for seamless delivery of Microsoft's technology, and we are proud to be aligned with a company whose extensive West Australian foothold, and growing global footprint already includes major European customers and the UK Government,” said ASG Group CEO Dean Langenbach.

Described as “an incredible West Australian success story” by Langenbach, Veralda has only five or so shareholders and has never raised outside capital, but had nevertheless grown its annual revenue to more than $45 million.

ASG Group acquires WA-based Microsoft consultancy Velrada

Named Microsoft Growth Partner of the Year in 2021, Veralda has expanded its headcount to more than 200 national and international staff since its founding in 2009, with clients including Rio Tinto, BHP, Sodexo, and Downer.

“It has been an incredible journey for Velrada and we are delighted with the outcome,” commented Velrada co-founder and CEO Robert Evans. “We bootstrapped this company ourselves, and through hard work and innovation, have grown Velrada into one of the most valuable technology companies in Western Australia. With this partnership, Velrada will be well positioned to continue with its rapid expansion in Australia and overseas.”

According to the terms of the deal, which has been suggested to be worth up to $80 million, ASG takes on 100 percent ownership of Veralda, but the company will continue to operate as a standalone business under its existing brand and leadership. ASG, since 2016 a subsidiary of Japanese-origin consultancy Nomura Research Institute (NRI), said that the investment would accelerate its own growth and aid alignment with key clients.

The acquisition of Velrada follows shortly after that of Canberra-based public sector and higher education management consultancy Pragma Partners in November, with fellow Canberra IT consultancy Group 10 Consulting picked up eighteen months earlier. ASG also acquired Brisbane’s 1ICT toward the end of 2019, while last year NRI bought Australian software testing company Planit in a deal reported to be worth $300 million.

According to a report in the Australian Financial Review from September, Velrada had originally hired local legal firm MinterEllison and accountancy RSM with a view to raising $30 million from an IPO on the Australian Stock Exchange, with the funds intended to fuel expansion in Europe and the US. ASG noted that Velrada now joins US-based Microsoft Cloud consultancy and managed service provider Core BTS under the NRI umbrella.