Atturra to acquire Perth-based Cirrus in $50 million deal
Ambitious Australian IT consultancy Atturra has made two acquisitions in the space of a week, headlined by the almost $50 million purchase of Perth-based managed services provider Cirrus.
Having hinted at a large, upcoming acquisition in its most recent annual financial report, IT services and consulting firm Atturra has made a $50 million play for Perth-based managed services provider Cirrus Networks.
The latest acquisition in Attura’s ongoing spree follows less than a week after the announcement of another purchase, Sabervox of Newcastle, and on the back of record annual revenues which jumped by 32 percent to $178 million.
“Cirrus will significantly expand Atturra’s recurring managed service capabilities and will provide an enlarged and complementary client base with significant future cross-sell opportunities,” Atturra CEO Stephen Kowal stated. “Cirrus brings a wealth of expertise in the government and energy and resources industries, having serviced some of the leading names across these sectors, enhancing Atturra’s ability to become a market leader in these sectors.”
Cirrus was founded in Perth in 2012 by former Dell executive Frank Richmond (who departed in 2017 and is now based in the UK), before being listed on the ASX three years later with recognition on Deloitte’s annual Tech Fast 50 list for 2015. The company pulled in $112 million in revenues of its own over the past financial year, and was previously a takeover target of Webcentral before the latter sold off its 18.5 percent stake for $5.5 million last year.
Cirrus CEO Chris McLaughlin described the sale to Atturra as a compelling opportunity for its investors; “We believe our deep expertise in our markets and our focus on delivering outstanding outcomes for our clients will be enhanced by the breadth of resources and strong market reputation that Atturra brings. Working with Atturra will provide excellent career opportunities for our team and we look forward to partnering going forward.”
Frequently stating its ambition to become the country’s leading homegrown advisory and IT solutions provider, the pick-up of Cirrus marks Attura’s fifth acquisition of the year, with a total outlay pushing $80 million. Having missed out on MOQdigital to Brennan IT late last year, Attura has since added Microsoft partner Hammond Street Developments, the Somerville Group, payroll consultancy Silverdrop, and most recently Sabervox.
Notably, like Cirrus and the upwards of $15 million forked out for Somerville, the 2007-founded Sabervox is yet another managed services provider, covering the Newcastle region. The deal, announced just last week and expected to complete by the end of the month, is worth up to $7.5 million, with a team of around a dozen employees including managing director Dan Wright to continue to work from Sabervox’s offices in Newcastle.
In addition to expanding Atturra’s MSP capabilities into regional New South Wales, Kowal said the acquisition of Sabervox, which services mid-sized businesses, would provide a launchpad for further regional expansion and economies of scale in terms of staffing, facilities and infrastructure; “Sabervox is recognised as a trusted partner in regional NSW and this acquisition enhances our ambition to be Australia’s leading advisory and IT solutions provider.”
