Australian M&A digest - Feb 2022

2. Deloitte adds digital healthcare consultancy The Checkley Group

Deloitte has further built up its Australian health sector practice following its two strategic acquisitions made last year – now adding digital healthcare consultancy The Checkley Group. The global professional services firm has picked up Sydney-based specialist healthcare and digital health consultancy The Checkley Group for an undisclosed amount, with founder and managing director Bruce Pedersen and co-managing director Alicia Curry to become Deloitte Consulting partners in the firm’s Technology Strategy & Transformation practice. The Checkley Group has a team of 15 professionals, who will formally join Deloitte in the middle of this month.

3. Bain & Company acquires Arcblue to bolster its procurement advisory services

Bain & Company today announces the acquisition of ArcBlue, a leader in procurement consulting across the Asia-Pacific region. ArcBlue will operate independently as part of Bain’s specialist procurement implementation service line – delivering procurement solutions to existing and new clients for both short and long-term engagements. Together, the two firms will leverage their expertise and services to strengthen Bain’s existing procurement offerings and offer clients differentiated, cost-effective, end-to-end procurement solutions, ranging from strategy to implementation. Founded in Australia in 2013, ArcBlue specializes in all aspects of the procurement lifecycle, with experience across a wide range of industries and supply categories. ArcBlue is recognised for delivering world class, transformational procurement programs and solutions -enabling clients to get maximum value from their procurement practices. Headquartered in Melbourne, Australia, ArcBlue has 10 offices across Asia-Pacific, and a team of more than 150 procurement professionals located across the region.

4. Indian giant HGS acquires Brisbane’s Diversify Offshore for $40 million

Brisbane-based Diversify Offshore Staffing Solutions has been fully acquired by a subsidiary National Stock Exchange of India-listed Hinduja Global Solutions (NSE: HGS) in a deal worth $40 million plus an unspecified earn-out. Under the deal, HGS International Mauritius will take a 100 per cent equity stake in Diversify Offshore, bringing the Australian company and its more than 1,500 staff into the HGS family. Founded by Rob Hynes a decade ago, Diversify Offshore delivers its staff offshoring services from the Philippines, providing consumer engagement solutions to its roster of more than 50 clients, 70 per cent of whom are in the Australia & New Zealand (ANZ) region with the balance in the US

5. MEC Mining Acquires Integrated Geological Mining Services

MEC Mining, the Brisbane based global mining consultancy, further bolstered their growing capabilities this week announcing the acquisition of Western Australia’s Integrated Geological Mining Services (IGMS). The Fremantle based consultancy company, which provides dedicated services to the resources industry and covers all aspects of exploration and mining activities, will now support MEC’s successful expansion into the west providing a multitude of bespoke services. Christofer Catania, MEC’s Chief Executive Officer, believes Integrated Geological Mining Services will be a formidable addition to the company’s growing portfolio. “IGMS has already built a solid reputation across the resources sector, successfully consulting with clients on multi-commodity projects across Australia, Europe and South-East Asia.”

6. Deloitte Digital Australia acquires three consultancies

Deloitte Digital says it will become Australia’s largest provider of marketing technology and digital experience offerings, with the addition of three new consulting teams, growing to a 1100-person business. The additional 70-person headcount comes from specialist consultancies Blended Digital, New Republique and Venntifact, all joining Deloitte Digital which has doubled its size since 2018. Commercial terms with the acquisitions haven’t been revealed. Lead Partner of Deloitte Digital in Australia Esan Tabrizi: “Our clients are constantly striving to utilise technology and behavioural understanding to drive better customer and stakeholder outcomes, and we believe organisations successfully adopting all things digital will be a key enabler of Australia’s post-COVID recovery. “Brands are certainly strongly focused on digital engagement. As a result, growth in demand for our marketing technology and customer experience business is relentless, and our growth to meet market demand will not be stopping here.”

7. Fujitsu bolsters Microsoft prowess with Oobe buy

Fujitsu Australia has added to its cyber security and cloud prowess with the acquisition of Microsoft gold partner and service provider Oobe. Acquired for an undisclosed amount, Fujitsu will utilise Oobe’s capabilities in cloud, modern workplace and security for digital transformation projects, while also improving its own government positioning from the acquired business’ proficiency in the public sector and defence industries. The terms of the deal sees Oobe’s employees remain, including CEO Stuart Kilduff, who has been added to the Fujitsu Australia executive leadership team as of 1 February. The Canberra-based service provider will also continue operating a standalone business but will be rebranded as ‘Oobe, a Fujitsu company’.

8. Fusion5 buys long-standing Adelaide partner Empyreal Solutions

Auckland-based Fusion5 has bought Adelaide specialist consulting organisation Empyreal Solutions. Empyreal delivers consulting services, deployment and troubleshooting related to Microsoft and Citrix technologies. The small but successful consultancy was founded in 2013 by Mark Montgomery, with co-director Daniel Marsh joining in 2016. Empyreal has partnered closely with Fusion5 from the start, supporting customers of all sizes throughout Australia and New Zealand.

9. Five V Partners with Mantel Group

We are excited to announce our first Five V Fund IV investment and partnership with Mantel Group. Mantel is one of Australia’s largest and fastest growing, independent technology consulting and software engineering firms. The business was established in 2017 and today employs over 500 people. Mantel Group’s expertise supports leading organisations across the digital transformation spectrum, including the strategy, build and implementation phases. Five V will support Mantel Group’s market leadership within its core cloud, data and digital verticals, as well as expansion into new complementary adjacencies including through acquisition.

10. Pollen Consulting Group joins Argon & Co

Pollen Consulting Group is delighted to announce that it has joined Argon & Co, the global management consultancy that specialises in operations strategy and transformation. The combined entities will become a market leader in Australia and New Zealand (ANZ) with a team of 60 consultants and offices in Sydney, Melbourne and Auckland, and over 400 consultants globally. With expertise spanning the supply chain, procurement, finance and shared services, Argon & Co work together with clients to transform their businesses and generate real change. Like Pollen, they are engaging to work with and trusted by clients to get the job done.

11. ASI Solutions boosts Microsoft skills with Tablet PC acquisition

ASI Solutions has acquired Victoria-based Microsoft tablet and productivity training expert Tablet PC. The acquisition will help ASI customers move to a modern workplace through streamlined access to end-user adoption training and education in an effort to maximise their return on investment in Microsoft solutions. Founded in 2011, Tablet PC particularly stood out because its training and consulting capabilities aligned closely with ASI’s requirements, it is claimed. Along with its Victoria headquarters, Tablet PC also has offices in Sydney and the Gold Coast, Queensland, boasting supplier agreements with companies such as Rio Tinto, SP Ausnet, Newcrest, BMA Mining, Melbourne Water and Veolia as well as hundreds of local, state and federal government entities.

12. Black Box completes acquisition of Dragonfly Technologies in Australia

Black Box Limited (formerly AGC Networks Limited), (BSE: BBOX and NSE: BBOX), a IT solutions provider has completed the acquisition of Dragonfly Technologies through its indirect wholly-owned subsidiary – Black Box Technologies Australia Pty Ltd. Dragonfly is Australia’s leading cyber security, enterprise networking and automation focused technology provider. With deep expertise and an enviable reputation as a pioneer, it is a trusted advisor to many well-known and recognized brands in the region. The acquisition will help strengthen our presence in the TransTasman region and further enhance our cyber security, enterprise networking, automation & consulting capabilities to offer a wide range of services to our customers globally.

13. National independent HERO has announced the integration of Melbourne-based creative agency Magnum Opus Partners into its full-service offering

Magnum Opus founder Mike Allen and partners, CEO Erin Lightfoot and creative director Pat Langton, will join the HERO leadership team and their staff will be integrated into HERO’s Melbourne team. While HERO’s full-service media offering was significantly bolstered by the arrival of industry veteran James Greet, who was appointed chief operating officer in 2021. Lilley said he intends to continue to maximise HERO’s national creative scope and scale by integrating more businesses in creative, data, design, media, technology and PR across Sydney, Melbourne and Brisbane. HERO will continue to pursue both organic and acquisitive growth opportunities as part of this strategy to take an entrepreneurial approach to building the national HERO business and its capabilities for the benefit of its national clients.

14. onPlatinum acquired by global cloud communications company, Comms Group

After 10 successful years, today’s announcement aligns with the onPlatinum Group’s targeted growth strategy. I am incredibly proud of the business our team has built, and our customers have been an integral part of our success. onPlatinum is very excited to become part of this new dynamic business ICT group. We decided to join Comms Group to be part of this growth journey and bring to the group our leading IT services portfolio and relationship with many great companies. I am pleased to be continuing as the Head of onPlatinum and look forward to working closely with the Comms Group team.

15. Exetel buy sends Superloop revenue soaring to $119.8M

Publicly listed fibre network operator Superloop has seen its half year revenue soar by 125 per cent year-on-year to $119.8 million off the back of its $110-million Exetel acquisition. For the half year ended 31 December 2021, Superloop added 110,000 consumer and business customers from Exetel to its existing base. Its consumer business saw the strongest growth from the acquisition, with revenue growing by 303.4 per cent to almost $60 million, while the business unit’s revenue grew by 124.5 per cent to $35 million. Wholesale business revenue also grew 12.8 per cent partially as a result of the Superloop Connect automated migration and management platform that the company claims now services more than 11,600 wholesale broadband services.