Atturra to acquire Blue Connections for AUD $18 million cash
Atturra has reached an agreement to acquire Blue Connections, an Australian company providing IT solutions and managed services across a range of sectors.
The agreement, reached through Atturra's subsidiary Cirrus Networks Holdings, sets out the acquisition of Blue Connections for an upfront cash payment of AUD $18 million.
Additional earn-out or post-completion consideration of up to AUD $7.5 million, payable in cash or shares, will be subject to Blue Connections meeting specific performance targets for the 2026 and 2027 financial years and the retention of key staff. Integration costs are budgeted at AUD $0.5 million.
The transaction is expected to close on or around 31 August 2025, subject to the fulfilment of various conditions, including receipt of consents required under Blue Connections' material contracts.
The share purchase agreement contains further provisions regarded as standard for transactions of this type.
Should completion proceed as planned, Blue Connections is forecast to contribute more than AUD $2.5 million in EBITDA during the 2026 financial year and more than AUD $3.5 million in EBITDA in 2027.
Blue Connections' operations
Blue Connections, established in 1997 and based in Melbourne, provides a comprehensive suite of IT solutions supported by a network operations centre.
Its offerings extend across networking, security, unified communications and collaboration, and it manages Microsoft Azure cloud solutions as both a Microsoft Partner and a certified Microsoft Cloud Solution Provider.
The company also delivers IT procurement and lifecycle management services, as well as device and workplace solutions, bid management, and warehousing, servicing clients in the mid-market, enterprise, and government sectors.
Its Australian-based 24x7 service desk supports clients at multiple engineering tiers.
Blue Connections' Melbourne facilities encompass an experience centre, training centre, configuration zone, and warehouse, and the company's services cover traditional on-premises infrastructure, virtualisation, consolidation, disaster recovery, and fully managed services.
Strategic rationale
The proposed acquisition of Blue Connections will significantly enhance Atturra's credentials as a leading provider in managed services. 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.
National expansion
According to Atturra Chief Executive Officer Stephen Kowal, incorporating Blue Connections will provide a foundation for expansion in Victoria, with minimal overlap between the customer bases of the two companies.
This is expected to provide new business opportunities and strengthen Atturra's managed services offerings nationally.
Blue Connections is known for its partnerships with global vendors and provides device lifecycle management as well as end user compute solutions. Its focus on modern workplace solutions and experience handling public and private sector clients is noted within the acquisition plan.
If the deal is completed as intended, the two companies will integrate their service capabilities to deliver enhanced IT services throughout Australia.
Atturra's existing footprint in sectors such as local government, utilities, and education is expected to be complemented by Blue Connections' experience in procurement and support, as well as its local facilities in Victoria.
