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Private equity group Advent Partners has acquired a majority stake in Sydney-based managed IT services provider Efex, laying plans to expand the company's existing regional footprint and drive a new phase of growth in the wake of its aggressive acquisition strategy.
The deal comes on the heels of Efex earlier this year completing its fifth acquisition in the past two years after securing full-service managed cybersecurity services provider Datcom.
The Melbourne-headquartered Advent Partners, which has more than $1 billion in funds under management, says Efex founder Nick Sheehan will remain CEO under the new business model which will include new customer offerings in line with market demand.
Sheehan established Efex in 2013 as a print reseller in Sydney but since then has grown the business to become a national technology services specialist with more than 250 employees, a client book of 7,500 customers and operations across 22 locations in Australia.
Efex provides a full suite of IT services underpinned by an advanced professional services automation platform, delivering services across cloud, cyber, unified communications, modern workplace, business resilience, managed document solutions and hardware provisioning.
Since inception, Efex has adopted a “buy and build” strategy, acquiring 11 client-orientated managed service providers, including cybersecurity specialist Datcom in May and medical services and healthcare specialist Medihost Solutions in December last year.
Efex has also built a strong regional presence across Australia with a customer base that spans professional services, education, healthcare, mining and local government.
Under the new ownership structure, and backed by Sheehan’s leadership, Advent Partners plans to continue pursuing Efex's “buy and build” strategy to bring on board regional and metro managed services providers across Australia and New Zealand and accelerate the company's expansion by focusing on its core strengths of mid-market and enterprise.
“I am pleased to announce this next step for Efex, an exciting opportunity for the business and a signal of more good things to come for the thousands of customers we service across Australia,” says Sheehan.
“Our team has created industry-leading solutions for our clients and a great home for other businesses looking to consolidate as the next step in their future.
“We were attracted by Advent’s collaborative approach to business, which will undoubtably drive productivity and deliver enhanced value for our customers and our people.
“We have significant ambitions, and by adding one of Australia’s most experienced investment managers to our corner, we are well-positioned to build on our success.”
Advent Partners was drawn to Efex because of the group’s automation platform which enhances scalability, integration efficiency and identification of additional customer requirements and tailoring of Efex solutions.
“Efex is a unique business, combining national scale with a genuine local connection,” says Brad Lynch, partner at Advent Partners.
“Its commitment to customer service and its culture as a great place to work position Efex as an ideal partner to drive continued consolidation within the managed IT services sector.”
Mark Jago, partner at Advent Partners, added: “As Efex continues to scale, we are excited to support Nick and the management team through our collaborative approach to help unlock new potential, and subsequently create more value for customers across the nation.”
Advent Partners, which was founded in 1984, has a track record of investing in innovative, technology businesses and supporting founder-led organisations such as Compass Education, Flintfox International, MedTech, RMS Cloud and Social Pinpoint.
Its investors include some of Australia’s largest superannuation funds, clients of Australia’s premier advisory groups, sovereign pension funds and international endowment funds.
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