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Acquisitive technology services group Atturra (ASX: ATA) has announced yet another company purchase with plans to buy Melbourne-based managed services provider (MSP) and systems integrator Blue Connections for an upfront cash payment of $18 million plus a potential $7.5 million worth of earn-outs.
The agreement, via subsidiary Cirrus Network Holdings, represents Atturra's sixth acquisition announcement since November having just completed a buyout of Brisbane-based SAP software solutions partner DalRae Solutions in June.
The buyer was attracted to Blue Connections' state-of-the-art network operations centre at its Melbourne facilities, which also include a training centre, configuration zone and warehouse.
Founded in 1997, Blue Connections has a strong footprint across the mid-market, enterprise and government sectors, with its team specialised in delivering end-to-end solutions including traditional on-premise infrastructure, virtualisation, consolidation, and disaster recovery, in addition to a full managed services offering.
"The proposed acquisition of Blue Connections will significantly enhance Atturra’s credentials as a leading provider in managed services," says Atturra CEO Stephen Kowal.
"It will strengthen Atturra’s service capabilities, while expanding its client base and portfolio of offerings. Notably, Blue Connections’ client roster has minimal overlap with Atturra’s, providing an opportunity to broaden Atturra’s revenue streams and market reach.
"The proposed acquisition aligns with Atturra’s strategic focus on its commitment to scaling its managed services capabilities. It will also establish a key operational hub for the business in Victoria, supporting continued national expansion."
Blue Connections also partners with leading global vendors and is both a Microsoft Partner and a certified Microsoft Cloud Solution Provider, managing and billing Microsoft Azure Cloud solutions.
The acquisition is due for completion by 31 August, and the acquired company is expected to contribute more than $2.5 million EBITDA in the current financial year, followed by $3.5 million in FY27.
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