efex buys Priority 1 IT to expand Queensland reach
efex has acquired Priority 1 IT, expanding its presence in Queensland.
Established in 2013, Priority 1 provides IT support to medical centres, healthcare practitioners and businesses across the Darling Downs and regional Queensland. It serves more than 600 businesses in the region.
The deal also strengthens efex's position in healthcare IT, an area it has been building through earlier acquisitions. Priority 1 brings a customer base in medical and healthcare services, along with a regional technical team.
For efex, the purchase extends its reach west of Brisbane and adds staff experienced in supporting organisations that need on-site service in regional areas. It also strengthens the company's ability to support customers with more complex requirements through local delivery.
efex Chief Executive Officer Nick Sheehan said Priority 1's footprint in regional Queensland was a key factor in the deal.
"Priority 1 is the market leader in the Darling Downs and anything west of Brisbane, which bulks up our technical capability and allows us to reach clients that require more complexity and local boots on the ground," said Sheehan.
He also highlighted the overlap between the two businesses' systems and the importance of healthcare to efex's broader plans.
"They have great clients, excellent staff, alignment on tech stack and operate in a region that we've long believed strongly in from a growth perspective. Importantly, they also strengthen our healthcare capability, which is an area we see as strategically important for efex," said Sheehan.
Regional push
The purchase follows a period of acquisition-led expansion for efex. It previously bought Medihost Solutions, a specialist in medical IT, and Compusult, a Shepparton-based managed services provider serving organisations across regional Victoria, mainly in the Goulburn Valley.
The strategy is aimed at widening geographic coverage and adding depth in sectors with more specialised IT needs. In healthcare, providers often require a combination of local support, continuity of service and familiarity with sector-specific systems.
Priority 1 has built its business around those regional and sector demands. Its customer relationships and local footprint have helped it establish a strong position in the Darling Downs and surrounding areas.
Private equity backing
The latest deal follows Advent Partners' acquisition of a majority stake in efex. That investment gave the company backing for further expansion through acquisitions of managed services businesses that fit its operating model and regional focus.
Private equity investment remains a notable feature of the managed IT services market, where buyers have sought scale, recurring revenue and sector specialisation. Regional service providers with established customer bases can be attractive targets for larger groups looking to broaden coverage without building local operations from scratch.
Priority 1 Founder and Director Jamie Patch said the transaction would give customers access to a broader range of services while preserving local relationships.
"Priority 1 has always been focused on delivering dependable, high-quality technology support for businesses across our region, including healthcare providers. Joining efex gives our clients access to broader capability and deeper resources, while preserving the local service and trusted relationships that have been central to our success," said Patch.
efex describes itself as an Australian business solutions provider with operations in managed IT services, cybersecurity, cloud computing, network management and consulting. The addition of Priority 1 gives it another regional base and a larger presence among healthcare customers outside metropolitan markets.
The Darling Downs business joins the group with an established presence among medical centres, healthcare practitioners and local businesses, adding to efex's network of regional managed services operations and extending its acquisition strategy in healthcare.