Business Sales Market Update

Publicly listed cyber security services provider Tesserent plans to acquire cyber security firm Loop Secure as a "strategic addition" to the company for a combined price of $13.5 million. Headquartered in Sydney and containing offices in Melbourne and Brisbane, Loop Secure offers managed security services, governance risk and compliance and offensive security services, as well as a security operations centre in Melbourne. The acquisition is being viewed as a “strategic addition to strengthen Tesserent’s Cyber 360 capabilities”, according to a statement published to the Australian Securities Exchange (ASX), with synergies and opportunities expected through its corporate relationships and skills.

Spirit Telecom has jumped back on the acquisition bandwagon with the $2.6 million purchase of managed services provider Arinda IT. Arinda, which is the trading name of Bigscreensound, currently has 300 customers and 12 members of staff working across Melbourne, Sydney, Perth, Tweed Heads and Byron Bay. Under the deal, Spirit will pay $2.1 million in cash for Arinda, when the remaining sum in scrip upon completion expected before the end of the month. According to Spirit, Arinda made $2.2 million revenue in the last financial year, a 16 per cent increase from 2018.

Connect is a market leading provider in the NSW power distribution sector with annual turnover in excess of $30million and FY20 normalised EBITDA of $2.1 million. Connect is registered under the Accredited Service ProviderScheme. It has been in continuous operation since 1998.Through this acquisition GenusPlus will build upon the integrated delivery model established by Connect, and it will significantly expand GenusPlus’ ability to provide power solutions to the infrastructure, industrial, commercial and residential developments sectors. This includes the design and construction of assets operated by Endeavour Energy and Ausgrid, two of the largest operators of NSW power networks.

Australian IT service provider FTS Group has acquired its second Canberra-based technology company this year in the form of Mentum Systems. The deal, made for an undisclosed sum, will see FTS Group purchase Mentum from New Zealand IT provider Optimation Group. Mentum Systems has been part of the Optimation Group since 2014, where, according to FTS, it has doubled its size and expanded its reach across the Department of Defence. Specialising in “complex modelling”, analytics software and mobile application solutions, Mentum partners with the likes of Aculard, Mark Logic, Outsystems and Smartlogic.

Dentsu Aegis Network has bought Davanti Consulting, bringing the New Zealand-based technology and business consultancy into its Isobar Group across A/NZ. The acquisition follows the recent rebranding of Dentsu Aegis-owned creative transformation agency Little Giant as Isobar New Zealand. Upon completion, Davanti will become "Davanti, linked by Isobar" across Australia and New Zealand. Salesforce specialist Davanti boasts a headcount of 125 across Auckland, Wellington and a recently launched Australian office. It counts many top tier clients, including New Zealand government organisations such as Customs, Stats NZ, and the Ministry of Primary Industries (MPI) as clients.

Brisbane-based MSP Essential Tech has acquired fellow Brisbane MSP Swytch. Swych was launched by Ben Browne in 2011 to meet the demand for managed IT services that he said he saw a need for during his time in a partnership with computer repairs company Nerd2Go.Essential Tech said the acquisition of Swytch will expand the company’s presence in the Australia and strengthen its delivery of services to the market, the company said in a statement. Both companies are focused on delivering high quality, customised IT solutions that focus on client satisfaction by working closely to understand the customer and their business needs.

The Australian division of Dutch Microsoft cloud specialist Rapid Circle has acquired Brisbane-based Microsoft partner Adopt & Embrace. Under the deal, Adopt & Embrace will continue to operate under the current brand and will form the adoption and change management business unit of Rapid Circle. The acquisition strengthens Rapid Circle’s expertise in the sustainable adoption of Microsoft 365 while also bolstering the business’ workplace transformation offerings, specifically those focused on people and business outcomes.