Apr 24 M&A Activity in B2B Services in Australia

2. Glow Capital invests in business coaching platform Equation

Glow Capital, the private equity firm run by former Quadrant Private Equity deal maker Justin Ryan and Adore Beauty co-founder Kate Morris, has inked a strategic partnership with business coaching platform Ecommerce Equation, Street Talk can reveal. Jay Wright, founder of Ecommerce Equation presenting at a customer conference late last year. Ecommerce Equation was founded in 2020 and has grown to 2,000 members, who collectively spend nearly $300 million on digital marketing. It offers subscription-based courses and training to businesses looking to scale profitably online. Courses cover digital marketing, brand building and operational frameworks. Founder Jay Wright will retain 59.9 per cent of the company and will continue to serve as the chief executive officer. Ryan, Morris and Glow’s associate director Annie Chen will join the board. Proceeds will be used to enhance Ecommerce Equation’s offering.

3. Seisma buys Melbourne cybersecurity firm Q1 Group

IT professional services company Seisma has acquired Melbourne-headquartered cybersecurity firm Q1 Group for an undisclosed fee. Founded in 2005, Q1 Group offers services covering cybersecurity, IT risk, data analytics, threat and incident management, financial crime and fraud investigations, and cloud security. The firm has over 160 staff based in Melbourne, Sydney, Canberra and Queensland. Seisma said the acquisition will enhance its cybersecurity capabilities and position the company as a full-service IT professional services provider. Q1 Group is Seisma’s sixth acquisition in four years and follows the company’s purchase of Sydney data and AI company Data Addiction in June 2023.

4. Exclusive Networks acquires Nextgen Group

Exclusive Networks has acquired Australian-founded specialist distributor Nextgen Group in a bid to boost its Asia Pacific (APAC) presence. Headquartered in Sydney, Nextgen Group was founded in 2011 by ARN Hall of Fame members John Walters with the backing of Steve Murphy. The deal will see Exclusive Networks plump up its software and services capabilities particularly in Australia and New Zealand (A/NZ). Walters will remain as Nextgen Group A/NZ CEO along with key leadership members. During FY23 ending June 30, Nextgen generated gross sales of $266 million with double digit growth on the horizon. According to Exclusive, Nextgen presents a hyper-growth vendor portfolio coupled with a wide array of services. The combination of Nextgen and Exclusive will offer unique end-to-end value-added channel management services, supported by real-time data analytics and AI-backed insights, benefiting the entire APAC region and providing Exclusive with the ability to roll-out digital channel services at a global scale. Nextgen’s strong expertise in cloud migration assessment, digital marketing and lead generation solutions will expand Exclusive Networks’ value proposition by leveraging Nextgen’s in-house state-of-the-art platforms and developed initiatives with hyperscalers, laying the foundations for the next phase of growth.

5. Sentient Vision Systems acquired by US defence tech giant Shield AI

Shield AI, a defence technology company building an AI pilot capable of operating fighter jets, drones and quadcopters, has snapped up Melbourne-based Sentient Vision Systems for an undisclosed sum. Founded in 2004 by Dr Paul Boxer, Sentient specialises in ViDAR (visual detection and ranging) – an optical radar technology that can detect very small objects, dramatically extending the coverage of aircraft in a broad range of missions including search and rescue, illegal fishing, counter-narcotics and maritime security. The company also developed Kestrel Maritime, a software solution that automatically detects objects on the surface of the water with electro-optical (EO) or infrared (IR) full-motion video. To date, the system has been deployed more than 3,500 times and integrated into a range of manned and unmanned aircraft. Clients on the company roster include the Australian Defence Force, Australian Maritime Safety Authority, United States Special Operations Command, United States Marine Corps, United States Coast Guard, United Kingdom Royal Navy, European Maritime Safety Agency, and more. The acquisition comes eight months after the companies partnered together to deliver a wide area motion imagery (WAMI) solution for the Department of Defense (DoD), Australian Defense Forces (ADF) and other international customers. Together, the firms agreed to develop and integrate a ViDAR-enabled, wide-area-search capability onto Shield AI’s V-BAT unmanned aircraft, enabling its vertical take-off and landing drone (VTOL) to intelligently classify, track, and read-and-react to targets in dynamic missions.

6. Mackay Goodwin expands to WA through GTS acquisition

Perth-based insolvency boutique GTS Advisory has joined Mackay Goodwin, with GTS founder Mathieu Tribut to lead the turnaround consultancy’s expansion into WA alongside Bradley Solly. Turnaround & restructuring consultancy Mackay Goodwin has expanded to the Australian west coast through the acquisition of Perth-based insolvency boutique GTS Advisory, with the office to be led by directors Bradley Solly and Mathieu Tribut. The merger sees Mackay Goodwin extend its footprint to twelve locations across Australia, covering each mainland capital in addition to outlets in Wollongong, Newcastle, Geelong, the Gold Coast and Townsville.

7. Macquarie Technology to acquire two Sydney data centres for $174 million

Macquarie Technology Group (ASX: MAQ) has announced a $100 million underwritten capital raise to help fund the acquisition of two data centres within its Macquarie Park Data Centre Campus in Sydney from Singapore-listed Keppel DC REIT (SGX: AJBU). The news follows NEXTDC’s (ASX: NXT) announcement yesterday of a successful $937 million institutional placement as part of a larger $1.32 billion raise, while ResearchAndMarkets.com recently issued a forecast that the Australian data centre market is set to rise from $2.5 billion in FY23 to more than $6.1 billion in FY28. Macquarie, which in February reported a 74 per cent increase in net profit after tax (NPAT) to $14.8 million in the December half, has reached a deal to buy the existing Intellicentre 2 and Intellicentre 3 East land and buildings within the campus for $174 million. The company already owns all mechanical and electrical plant and fit-out for the sites, and is also building a third data centre to the campus called Intellicentre 3 SuperWest, which upon its expected completion in the third quarter of the 2026 calendar year will have all of its end state power in place to support 63MW of IT load. The purchase price will be partially funded from an unsecured $90 million loan note to be issued to Keppel for an 8.5-year period, in addition to a $100 million placement at $72.50 per share, representing 6.1 per cent discount to the last closing price.

8. Founder-led Solution Underwriting acquired by UK insurance provider CFC

After 14 years in business and with 55 staff spread across four Australian offices, Melbourne-based Solution Underwriting has been acquired by insurance and cyber products provider CFC for an undisclosed value with the co-founders receiving shares in the UK-headquartered buyer. The move comes just over three years after CFC’s acquisition in March 2021 of Gold Coast-based cyber incident response company Insane Technologies, which has since been rebranded as CFC Response. Similarly, within a year Solution Underwriting is expected to be rebranded to CFC Australia or a similar name to that effect. Co-founders Rhys Mills and Anita Lane, Solution Underwriting’s managing director and director respectively, will continue to lead the business.

9. UST Strengthens Presence in the Australian Market with Strategic Acquisition of Leading Consulting Firm Strativity Group

UST, a leading digital transformation solutions company, today announced that it has acquired Strativity Group, a boutique strategy consultancy specialising in customer-centric transformations. Strativity is renowned for delivering customer experience strategy, design, innovation, change management, and operating models through adopting an insight-led approach that creates competitive advantage and tangible value creation. UST and Strativity share a common vision of empowering client growth by creating and activating meaningful experiences for customers, employees, and partners. By bringing together Stativity’s customer-centric advisory credentials and UST’s domain, process, and technical expertise at a global scale, UST believes it will be well positioned to help clients navigate the complexities of the ever-evolving business landscape to meet customer expectations and drive tangible business outcomes.

10. MACA Interquip acquires Engineering firm Minitrex

MACA Interquip is pleased to announce the acquisition of engineering firm Mintrex Pty Ltd, building on the strong metals and minerals capabilities across the Group companies. A Western Australian business founded in 1984, Mintrex has built a strong reputation in engineering consulting, project management and asset management in the mining sector. The acquisition of Mintrex brings enhanced capability and expertise, a strong client base and pipeline of projects, and an engineering offering that is complimentary to the existing MACA Interquip engineering and construction business. Acquiring Mintrex demonstrates MACA Interquip’s commitment to further enhancing its capabilities in delivering innovative engineering solutions across the mineral processing, energy and resource sectors. Geoff Jones, CEO of MACA Interquip, affirms the significance of this acquisition in the future of the business.

11. Software Combined crosses the Tasman with Activate acquisition

Sydney-based software aggregator Software Combined Group has acquired Auckland self-service automation and business process specialist Activate, establishing a presence in New Zealand. Activate is the seventh business-to-business software company acquired by Software Combined since it began operations in 2020. Founded in 2005, Activate provides workflow automation for end users in enterprises to streamline tasks. Users can self-manage their environment including email lists, Microsoft Teams, shared mailboxes, application access and hardware requests through to full life-cycle management of employees. Activate also increases security and control and reduces costs across a range of enterprise customers directly and with partners.

12. Claxon acquires creative agency Embark

Independent agency Claxon has acquired Gold Coast creative agency Embark. The acquisition is Claxon’s second in 14 months. Commercial details haven’t been released. Claxon founder and CEO Daniel Willis says acquisition remains a focus, especially as the agency continues its current push into the UK market. Founded in 2003 by brothers James and Phil Coulson, Embark has worked with brands such as Bartercard, BMW, Land Rover and NSW TAFE. Embark will retain its own brand in market but assume a co-branded position, with all staff and clients remaining with the expanded agency. The acquisition provides Embark clients with an end-to-end marketing and advertising offering. James and Phil Coulson will join the senior leadership team at Claxon and will retain their roles as creative directors of Embark. Founder James Coulson said after 21 years of creating exceptional brands, the agency is excited to start a new chapter with Claxon.