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Advisory and technology services firm Atturra announced today that it has entered into an agreement to acquire Exent Holdings Pty Ltd, an advisory and consulting services firm. This strategic acquisition is expected to bolster Atturra's advisory and consulting capabilities and expand its national presence beyond its traditional Canberra and Defence sectors.
Strategic Acquisition of Exent
Atturra, through its subsidiary Atturra Advisory Pty Ltd, will acquire Exent for an upfront consideration of $6 million in cash. An additional earn-out/post-completion consideration of up to $2 million is contingent upon Exent meeting performance targets in the first half of FY25. The total purchase price, including deferred consideration, is based on a multiple of 6.5x Exent's forecast EBITDA contribution to Atturra in FY25.
Exent, headquartered in Brisbane, specialises in business transformation projects that encompass technology, people, and business processes. The firm is known for its vendor-neutral, client-side technology advisory services and has a strong presence in the health, aged care, and education sectors.
Atturra CEO Stephen Kowal expressed his enthusiasm for the acquisition, stating, "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 has worked with the Exent team through its Local Government and Education clients and is aware of its highly regarded reputation in advisory. They also have a specialisation in aged care and a growing capability in health."
He continued, "As part of our growth strategy, we have been seeking the right opportunity to harness our strength, expertise and reputation in Canberra and Defence to expand our advisory business into the commercial sector. The acquisition of Exent with its complementary expertise gives us the perfect entry point. There is a strong cultural alignment between the two companies, and we look forward to welcoming Phil Fowdar and the Exent team to Atturra."
Joe Fazzari, Founder of Exent, remarked, "From inception, Exent has been on a mission to challenge and innovate the consulting space. On the back of great client outcomes and a superb team, we have delivered on our goals. Ranking as Australia's 33rd fastest growing firm last year, we were looking carefully at our next stage of growth. A strategic acquisition made perfect sense, and Atturra was the perfect partner. Exent's capabilities in business transformation, complex technology advisory and implementation, process re-engineering and people change are perfect complements to Atturra's scale and depth in technology. Atturra is an excellent fit on capability, culture, and mission. With this acquisition, we aim to accelerate Atturra's drive to become Australia's leading technology services firm."
Phil Fowdar, Managing Partner of Exent, added, "The leadership team at Exent is excited about this acquisition, which expands our capabilities and service offering to clients, and provides tremendous career opportunities to our team. Our depth in complex technology-enabled transformation and commitment to outcomes will be greatly enhanced by the resources and reputation of Atturra. We see enormous potential to bring our advisory capability to the breadth of Atturra's technology capabilities. With Atturra, we have a strong shared vision, backed by the scale and depth in business and technology transformation, to create a leading full-service firm with a difference."
Strong FY24 Performance and Positive FY25 Outlook
Atturra also reported its unaudited financial results for FY24. Revenue is expected to exceed $240 million, reflecting a 35% increase compared to the prior corresponding period (PCP). The company's Underlying EBITDA for the full year is projected to be between $25 million and $26 million, up 19% on PCP and in line with previous guidance.
The company has signed over 40 new federal government contracts across various departments, demonstrating confidence in Atturra's sovereign capabilities. Although individually not material, these contracts collectively contributed to the overall strong performance in FY24.
CEO Stephen Kowal noted, "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. Despite the challenges always inherent in these processes, we have delivered on our forecast and closed many deals to enter FY25 with a strong backlog."
Looking ahead, Atturra expects to achieve over 20% revenue growth in FY25 while maintaining its underlying EBITDA target of 10.5%. The integration of acquisitions and a robust pipeline of contracts position the company for continued success.
