Atturra Expands National Presence with Exent Holdings Acquisition
ATA (ATA) Share Update July 2024 Wednesday 31st
Atturra Completes Acquisition of Exent Holdings
Atturra Limited (ASX: ATA) has announced the successful acquisition of Exent Holdings Pty Ltd, marking a strategic expansion of its advisory and consulting services across Australia.
Instant Summary:
- Atturra acquires Exent Holdings for $6 million in cash.
- Additional earn-out consideration of up to $2 million based on performance.
- Acquisition aims to extend advisory and consulting capabilities nationally.
- Purchase price based on a multiple of 6.5x forecast EBITDA for FY25.
Acquisition Details
Atturra Limited, through its subsidiary Atturra Holdings Pty Ltd, has completed the acquisition of Exent Holdings Pty Ltd. The upfront consideration for Exent is $6 million in cash, with an additional earn-out consideration of up to $2 million, contingent on Exent achieving performance hurdles in the first half of FY25.
The acquisition is strategically aligned with Atturra's goal to extend its advisory and consulting capabilities beyond Canberra and Defence, expanding its practice nationally. The purchase price, including both upfront and deferred considerations, is based on a multiple of 6.5x forecast EBITDA contribution to Atturra in FY25.
Strategic Importance
Headquartered in Brisbane, Exent is a specialist advisory and consulting services firm that focuses on business transformation projects. These projects span people, process, technology, and data, making Exent a valuable addition to Atturra's portfolio. The integration costs are forecast to be less than $400,000, making the acquisition financially viable.
Stephen Kowal, CEO of Atturra, expressed enthusiasm about the acquisition, highlighting the increasing demand for trusted advisors capable of managing extensive technology change programs. He noted that Atturra's collaboration with Exent in local government and education sectors has already demonstrated Exent's strong reputation in advisory services.
Leadership Perspectives
Phil Fowdar, Managing Partner of Exent, echoed the positive sentiment, emphasizing the expanded capabilities and career opportunities the acquisition brings to Exent's team. He highlighted the strong cultural alignment between the two companies and the shared vision for creating a leading full-service firm in business and technology transformation.
This acquisition is expected to have a positive impact on Atturra's stock as it enhances the company's service offerings and expands its market reach. The strategic alignment and cultural fit between Atturra and Exent are likely to result in a smooth integration, minimizing disruption and maximizing synergies.
Investor Reaction:
Analysts are likely to view the acquisition favorably, given the strategic fit and potential for revenue growth. The performance-based earn-out consideration aligns the interests of both companies, ensuring a focus on achieving key performance metrics.
Conclusion:
Investors should keep an eye on Atturra's performance in the coming quarters to gauge the success of the Exent integration. The acquisition represents a significant step in Atturra's growth strategy, and its execution will be crucial in maintaining investor confidence.