Australian Advisory Atturra Acquires Exent for $8 Million

ASX-listed advisory Atturra is continuing its big-spending acquisition spree, announcing that it would absorb Brisbane-based Exent in a deal worth as much as AUD$8 million.

This is more than the $5 million it splashed out to acquire Sabervox in September of last year and around half of the $16.5 million it paid to take over veteran MSP Somerville in April of the same year.

Exent is a consultancy that bills itself as an alternative to the “Big 4” in providing clients with support around technology, processes, people, and data. In addition to its Brisbane headquarters, the company maintains offices in Sydney and Melbourne.

It was ranked as Australia’s 33^rd fastest-growing firm last year, according to the AFR Fast 100.

“There is an increase in businesses looking for a trusted advisor with the capability to help scope extensive technology change programs and then advise on this complex transformational activity,” Atturra CEO Stephen Kowal said in an investor’s statement to the ASX.

Kowal noted that Atturra and Exent had already collaborated in the past in engaging local government and education clients.

“The leadership team at Exent is excited about this acquisition, which expands our capabilities and service offering to clients,” Exent Managing Partner, Phil Fowdar, said in the ASX statement. “Our depth in complex technology-enabled transformation and commitment to outcomes will be greatly enhanced by the resources and reputation of Atturra.”

A Year Of Significant Revenue Growth

At the same time as announcing the acquisition, Atturra posted its full-year financial results, with revenue exceeding $240 million — an increase of 35% on the prior corresponding period.

As noted in the statement, the revenue growth is a consequence of three major acquisitions — Somerville, Sabervox and Cirrus Networks. These acquisitions also resulted in a decline in EBIT of 18% YOY, but the company attributes the vast bulk of this to the one-off cost rather than any other ongoing factors.

“FY24 has been a transformational year for Atturra. We have been actively pursuing a strategy to build our managed services capabilities and we have successfully integrated the managed services acquisitions, Somerville, Sabervox and Cirrus, into one strong-performing business unit,” Kowal said in the statement. “I see continued rapid growth, both organic and inorganic, of more than 20% of revenue in FY25 whilst maintaining our historic 10.5% underlying EBITDA.”

These acquisitions and the moves to strengthen the Atturra MSP business come at a time when there is a strong opportunity in the A/NZ market. AI and cyber security have been identified as two of the most significant opportunities, but there is a general demand for services and outsourcing support of all kinds.

This is only the most recent in a string of M&A activities in the region. Excite Cyber announced its intention to acquire CBIT Digital Forensic Services for AUD$4 million in June.