Atturra to acquire Plan B and Chrome Consulting as part of managed services growth strategy

Technology services provider Atturra (ASX: ATA) is set to expand its offerings to the New Zealand market with the acquisition of cloud, network connectivity, data centre and managed services provider Morgan Holdco (Plan B).

Atturra will complete the deal through subsidiary Cirrus Networks for an upfront consideration of approximately $18.16 million in cash.

Plan B operates a network of five primary data centres across New Zealand’s North and South Islands, with a high level of recurring revenue and a diverse customer base of more than 1,000 clients across Australia and New Zealand.

Geographical expansion

“The acquisition of Plan B fits into our ambition to be a leader in managed services and will be a launchpad for our further expansion geographically and in capability,” Atturra chief executive officer Stephen Kowal said.

“Plan B is recognised as a trusted partner in New Zealand, and this acquisition perfectly aligns with our growth strategy.”

An earn-out consideration of up to $4.09m will be payable on the achievement of pre-determined performance milestones based on audited EBITDA targets for the financial year 2025.

The purchase price, including upfront and deferred consideration, is based on a multiple of 6.2 times Plan B’s forecast EBITDA with integration costs of approximately $580,000.

‘Natural fit’

Plan B chief executive officer Frazer Scott welcomed the deal.

“Plan B and Atturra have a shared focus on people and customer success, making the partnership a natural fit,” he said.

“Our team remains committed to the business and delivering exceptional outcomes for our customers, who will also benefit from Atturra’s extensive capabilities and resources.”

The acquisition is expected to be completed this week.

Chrome acquisition

Last week, Atturra announced plans to purchase Melbourne-based Chrome Consulting through its subsidiary company Anatas.

The $3.6m deal will complement Atturra’s data and integration practice by strengthening its enterprise content management (ECM) capability, supported by strong governance and compliance.

Atturra expects the acquisition to cement its position in Australia as an OpenText ECM leader and expand its data services portfolio to SAP (systems, applications and products) and Microsoft landscapes.

“This acquisition is another step in our strategy of selecting leading technologies and focusing on being a market leader, ensuring we can offer best-in-class solutions to our clients,” Mr Kowal said.