Atturra Limited's Strategic Acquisition of Chrome Consulting
ATA (ATA) Share Update November 2024 Thursday 21st
Atturra Limited to Acquire Chrome Consulting, Expanding ECM Leadership
Atturra Limited (ASX: ATA) has announced a significant acquisition of Melbourne-based Chrome Consulting, a leading OpenText Enterprise Content Management partner, to strengthen its market position in Australia.
Instant Summary:
- Atturra acquires Chrome Consulting to enhance ECM services.
- Acquisition includes $4.0M cash and $1.0M in shares, with additional earn-out potential.
- Chrome Consulting is a leading OpenText partner with a strong SAP ecosystem presence.
- Acquisition expected to complete by 24 December 2024, pending conditions.
Acquisition Details
Atturra Limited, through its subsidiary Anatas Pty Ltd, is set to acquire Chrome Consulting Pty Ltd, an award-winning OpenText partner based in Melbourne. This acquisition aims to solidify Atturra's position as a leader in Enterprise Content Management (ECM) solutions within Australia.
The acquisition involves an upfront payment of $4.0 million in cash and $1.0 million in shares, with a potential earn-out of up to $2.5 million based on Chrome's performance over the next two fiscal years. The total purchase price is calculated on a multiple of 7.5x forecast EBITDA, with integration costs estimated at $300,000.
Strategic Implications
Chrome Consulting is renowned for its expertise in the SAP ecosystem, providing comprehensive ECM services from strategic advisory to implementation and ongoing support. The acquisition will enable Atturra to expand its data services portfolio, particularly in SAP and Microsoft enterprise landscapes, and enhance its client base in OpenText solutions.
Atturra's CEO, Stephen Kowal, emphasized the strategic alignment and potential for growth, noting the cultural fit and complementary capabilities of both companies. This acquisition is part of Atturra's broader strategy to lead in technology solutions and offer best-in-class services to its clients.
Completion and Future Outlook
The transaction is expected to close by 24 December 2024, subject to standard conditions precedent, including obtaining necessary consents for change of control under Chrome's contracts. The integration of Chrome's team into Atturra is anticipated to drive further innovation and customer success in the ECM space.
This acquisition is poised to enhance Atturra's competitive edge in the ECM market, potentially boosting its stock value as investors recognize the strategic benefits. The expanded service offerings and client base could lead to increased revenue streams and market share.
Investor Reaction:
Analysts are likely to view this acquisition positively, given the strategic fit and growth potential. The deal underscores Atturra's commitment to expanding its capabilities and market presence, which may bolster investor confidence.
Conclusion:
Investors should consider the long-term growth prospects that this acquisition presents for Atturra. The successful integration of Chrome Consulting will be crucial in realizing the anticipated synergies and market leadership in ECM solutions.