Atturra Acquires Chrome Consulting to Strengthen Enterprise Content Management Offerings
ATA (ATA) Share Update November 2024 Friday 29th
Atturra Completes Acquisition of Chrome Consulting to Boost ECM Capabilities
Atturra Limited, a prominent player in the technology services sector, has successfully acquired Melbourne-based Chrome Consulting, a move that significantly enhances its enterprise content management capabilities.
Instant Summary:
- Atturra acquires Chrome Consulting through its subsidiary Anatas Pty Ltd.
- The acquisition includes $4.0M in cash and $1.0M in shares, with potential earn-out of $2.5M.
- Chrome Consulting is an award-winning SAP/OpenText partner.
- The acquisition will enhance Atturra's data and integration practice.
- Integration costs are projected at $300,000.
Acquisition Details
Atturra Limited, through its subsidiary Anatas Pty Ltd, has completed the acquisition of Chrome Consulting Pty Ltd. The acquisition, valued at $4.0 million in cash and $1.0 million in shares, with an additional earn-out of up to $2.5 million contingent on performance hurdles, aims to bolster Atturra's enterprise content management (ECM) capabilities.
Chrome Consulting, headquartered in Melbourne, is renowned for its expertise in SAP/OpenText solutions, delivering comprehensive ECM services from strategic advisory to implementation. The acquisition is expected to complement Atturra's existing data and integration practices, enhancing its service offerings and expanding its reach in the IT services market.
Strategic Importance
Atturra's CEO, Stephen Kowal, highlighted the strategic alignment between the two companies, emphasizing the cultural synergy and the potential for expanding into broader enterprise solutions. This acquisition is part of Atturra's strategy to maintain its leadership in the rapidly growing ECM sector and to continue delivering innovative solutions to its clients.
Chrome Consulting's CEO, Mark Frear, expressed enthusiasm about the acquisition, noting that Atturra's partner-friendly culture and complementary capabilities would accelerate Chrome's growth and enhance customer success.
The acquisition is expected to have a positive impact on Atturra's stock as it strengthens the company's position in the ECM market. By integrating Chrome's expertise, Atturra can offer enhanced services to its clients, potentially leading to increased revenue and market share.
Investor Reaction:
Analysts are likely to view the acquisition favorably, considering the strategic fit and potential for growth in the ECM sector. The deal aligns with Atturra's long-term goals and could attract positive investor sentiment.
Conclusion:
Investors should consider the potential benefits of Atturra's acquisition of Chrome Consulting, as it positions the company for growth in the ECM market. Monitoring the integration process and subsequent performance will be crucial for assessing the long-term impact on Atturra's financial health and stock performance.