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Sydney-based advisory and technology solutions provider Atturra (ASX: ATA) is raising up to $66.6 million with the bulk of these funds slated for the acquisition of three businesses, which are expected to boost the group’s underlying earnings by almost 30 per cent in FY26.
While the company has yet to name the businesses it has contracted to buy, Atturra was forced to reveal to the ASX last month that it has been negotiating to snare Plan B, an information and communication technology solutions business, from investment group The Growth Fund.
Plan B would give Atturra increased exposure in the New Zealand market where the company has worked with the likes of Rabobank and global tech group Rakon.
Attura is aiming to raise the fresh capital through a placement of about $60.5 million and a further $6.1 million via a share purchase plan at an issue price of $1.05 per share. This compares with the company’s last closing price of $1.10 ahead of a trading halt requested by the company today.
The capital raising will be undertaken in two tranches, with the first of about $26.5 million to be raised from institutional and sophisticated investors.
The second tranche of about $34 million comprises a commitment from substantial shareholder 263 Finance, which is controlled by company director Shan Kanji, with this placement subject to shareholder approval.
Atturra says it is in advanced discussions for the three acquisitions, each of which will complement separate areas of its business that cover enterprise advisory, consulting, and IT services and solutions for the government, utilities, education, defence and financial services sectors.
The combined cost of the acquisitions is expected to be about $45 million, which includes potential earnouts and a small scrip consideration.
Atturra, which employs about 900 people in Australia, New Zealand, Singapore and Hong Kong, has revealed that one of the businesses is “a significant managed network services provider and private cloud provider, primarily based in New Zealand with a significantly growing presence in Australia”.
“The acquisition provides a strong base to expand managed services within New Zealand and expands Atturra network and private cloud to cover all of ANZ, providing a highly predictable revenue stream,” says the company, adding that this is the largest of the three acquisitions.
The second acquisition is described as “a leading provider of end-to-end supply chain technology, with a strong presence within manufacturing, and over 60 clients”.
“Atturra already has a strong position in the manufacturing sector, which has grown strongly since inception,” says the company.
“This acquisition brings an additional technology stack into the manufacturing team, with a vendor Atturra has significant experience with. This acquisition will make Atturra a clear leader in manufacturing applications within ANZ.”
The third business is in the enterprise content management space, with the company saying this company has a “strong alignment to Atturra's current technology stack”.
Atturra estimates the acquisitions will boost its FY26 EBITDA by between $6.5 million and $7.5 million – which at the top end of this scale represents a 29.4 per cent increase on the group’s FY24 EBITDA of $25.46 million.
The acquisitions will also deliver combined revenue of between $45 million and $60 million in FY26.
Atturra CEO Stephen Kowal says the capital raising will proved the company with capacity to further accelerate its growth trajectory.
“We are nearing three strategic acquisitions which will expand our existing capability in key areas and broaden our service offering for clients,” he says.
“Today marks an important milestone in our journey to becoming Australia’s pre-eminent Advisory and IT solution provider, and we remain well-positioned to capitalise on both organic and inorganic growth opportunities going forward.”
Kowal, who has led Atturra since 2019, has overseen several acquisitions that have helped rapidly grow the group, including three in 2023.
Atturra is working on a further three acquisitions for the second half of FY25 worth more than $40 million.
The company describes one of them as a strategic acquisition in the managed services space and two tactical acquisitions comprising a niche advisory organisation and an integration services provider.
The company says “high level conversations have been ongoing for over 12 months and detailed conversations for more than six months” on these deals which are likely to be closed off before the end of this financial year.
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