M&A Deals are not on holidays in the B2B services sectors!

2. RyanCap sold to Labelium group

French-headquartered digital marketing performance and consulting agency Labelium Group has acquired Australian holding company, RyanCap. The agency group was launched in June 2020 by former Dentsu CEO Simon Ryan. RyanCap houses a number of digital-first marketing and media buying brands, including Ryvalmedia, Foxcatcher and Tightrope. The group currently has a headcount of more than 70 people, and lists a significant client portfolio that includes: Bet365, MyDeal, Live Nation, Anthem, Mahindra, MYOB, Big4, Hisense, CommBank KIT, Stratton Finance, Ray White, Ignite Travel, Click Frenzy, SelfWealth, AGL and Sleepmaker. The global acquisition appears to be an evolution from founder and CEO Simon Ryan’s emphasis on the group’s local edge. Speaking at Mumbrella360 last year, Ryan drummed an “Australia-out” strategy, contrasting RyanCap’s local focus to that of the global holding companies. Founded in 2001, Labelium has a global presence of more than 1200 employees across 17 countries in Europe, APAC, the USA and South America. The RyanCap acquisition bolsters the group’s Australian presence, following its acquisition of 1000heads in 2022. The latest move expands Labelium’s local capabilities to more than 120 talent between Sydney, Melbourne and Brisbane. The new ownership structure will no impact current management at RyanCap’s agencies, which will remain in a business-as-usual position, with no plans for a merger or changes to day-to-day operations.

3. Accenture buys New Zealand cloud and IT consultancy Solnet

New Zealand consultancy Solnet has sold to Accenture on the eve of its 20th anniversary, the global powerhouse’s latest acquisition adding another 100 professionals to its local headcount. Professional services firm Accenture has picked up Wellington-based cloud advisory Solnet, with a team of over 100 practitioners set to join the global consulting powerhouse. The deal follows three years on from the purchase of local SAP specialist Zag – in a move which supercharged the firm’s New Zealand revenues – and comes in the same week that recent SAP cloud acquisition Bourne Digital officially joined Accenture’s Australian offices. Approaching its two-decade anniversary, Solnet was established in 2003 by IT industry veteran and managing director Mark Botherway. The company provides digital transformation services to in particular the government, primary industries, and financial services and insurance sectors, covering strategy, experience design, intelligent automation, delivery, and managed services – which Accenture says enables Solnet to support long-term engagements.

4. Soprano Design makes $63m takeover bid for Whispir

Shares in Melbourne-based Whispir have reached a higher pitch after receiving a takeover bid from Soprano Design valuing the communication solutions technology provider at $62.88 million, which is 60 per cent above its last trading price but well below its initial public offering (IPO) valuation of $163 million in mid-2019. From SMS messages to email, forms to landing pages and social media, Whispir’s platform automates communications between organisations and people – an offering that generated a jolt in activity during the pandemic with messaging for vaccine roll-outs, pathology tests, e-prescriptions and more, but in FY23 revenue dropped by almost a quarter amidst a cost-cutting restructuring in pursuit of positive free cash flow. Following a financial year when its losses deepened to $12 million, in its annual report Whispir claimed its 30 per cent staff cut in November 2022 alongside withdrawal of resources from the US helped deliver $20 million in annualised savings, reducing free cash outflows to just $1.3 million in the June quarter. Amidst improving margins, Whispir also secured a $7.5 million debt facility with RiverFort Capital, and late last month announced a $3.25 million raise as well as the resignation of its founder Jeromy Wells from the role of CEO, who will remain in the position for four months before transitioning to executive director.

5. Southern Cross Media confirms merger bid from Australian Community Media

Radio network giant and regional TV broadcaster Southern Cross Media Group has confirmed a merger bid is on the table from Australian Community Media (ACM), which is prepared to give up its regional publications and digital assets in exchange for a shareholding in the ASX-listed group. In an announcement to the market, Southern Cross was unable to reveal any financial details of the non-binding indicative conditional proposal from ACM, which is owned by media moguls Antony Catalano and Alex Waislitz. Former Domain (ASX: DHG) CEO Catalano and Waislitz, via his affiliated entities Thorney Opportunities (ASX: TOP) and Thorney Investment Group, acquired ACM from Nine (ASX: NEC) for $115 million in 2019. Their media group is Australia’s largest independent publishing company with more than 100 brands reaching a reported 4.3 million people each month. At the time of the acquisition its number of titles was three times greater, but after a temporary suspension on print publications in 2020, numerous publications were permanently shut down. The latest offer not only threatens the “independent” label of Australian Community Media, but it also throws a spanner in the works of an existing merger proposal with Southern Cross from ARN Media. ARN’s offer values Southern Cross at $225 million in a deal backed by private equity group Anchorage Capital Partners that would bring together ARN’s radio networks such as Pure Gold and KIIS with Southern Cross brands Hit Network, Triple M and LiSTNR.

6. Civica acquires new cloud-based facilities management solution, booka

Global GovTech leader Civica strengthens APAC local government offering with new cloud facilities management solution. Civica has acquired cloud-based facilities management solution, booka, a move which will see the Global GovTech leader significantly enhance its offering to local councils and citizens throughout Australia and the broader Asia-Pacific region. Developed by Canberra-based firm Rollercoaster Digital, booka currently supports over 4,300 stakeholders and 3,400 public facilities, ranging from libraries to parks to sporting facilities. The solution will be integrated into Civicas leading cloud-based, local government platform. Authority Altitude, which is used by over 150 local authorities across Australia and New Zealand. Authority Altitude’s current suite of enterprise capabilities includes people management, payroll amp; finance, name and address register management, customer request handling and rates. Following the booka acquisition, Civica customers can now look forward to reaping the benefits of the solution’s innovative task flow management features, enabling them to expedite payments, enhance operational efficiency, and optimise the management of publicly owned assets. The booka solution will also be integrated into Civica’s global suite of public sector software, offering enhanced administrative efficiency and streamlining processes across a diverse range of public bodies across the world.

7. Deloitte buys 70-person asset management specialist Nihar

Deloitte has boosted its asset management capabilities with the acquisition of Perth-based engineering services consultancy Nihar. Now part of Deloitte’s consulting business, Nihar specialises in asset management engineering services – including capital projects, operations readiness, asset management and performance optimisation – for the oil & gas, mining and minerals, manufacturing, and utilities sectors. The addition of the 70-stong Nihar team comes months after Deloitte also strengthened the strategy and transactions part of its consulting business, following the arrival of the Perth-based team from Mainsheet Capital. Deloitte’s asset management consulting team now has 260 partners and staff, working for clients across asset heavy sectors, including energy & utilities. Previously, Deloitte also acquired Brisbane-based Bluefield to bolster this team. The deal is Deloitte’s sixth in Australia this calendar year. Since 2018, the Big Four firm has closed more than 30 acquisitions nationally, in part helping the firm leapfrog PwC as the Big Four leader in the Australian market.

8. The Civic Partnership acquires ASX-listed Enero Group’s comms firm

Public affairs group The Civic Partnership has today announced its acquisition of CPR Communications & Public Relations, from the ASX-listed Enero Group Limited, Mumbrella can exclusively reveal. The Civic Partnership describes itself as a “partner in the boardroom, staffroom, newsroom and courtroom”, with majority government, corporate and non-profit clients. CPR’s Brendan Rowswell and Rora Furman, who are long-term employees of  CPR, will keep the CPR brand, returning to the agency to lead the firm. The Enero Group posted solid results in the 2023 financial year, despite a drop in profit for its brand transformation unit, which included CPR. The ASX-listed company’s new revenue saw a 25% lift on the previous period, to $241.6 million. In April, the group extended Brent Scrimshaw’s CEO contract for another three years, as chair Ann Sherry said he “led a significant transformation of the group”, and they were pleased with his performance.

9. Orro acquires Melbourne’s NW Computing

Cloud specialist will help Orro boost its public and private cloud services. Orro Group has acquired Melbourne-based IT consulting and services firm NW Computing in a bid to boost its cloud offerings. Founded by Nathan Wright in 2006, the NW Computing team consists of more than 50 employees and provides public and private cloud services across Australia and New Zealand. Wright will now take up the role of chief technology officer for cloud at Orro Group, “taking on a key strategic role within the business”. Orro, which was founded from a merger between Comscentre, CustomTec, Correct Solutions and Mach Technology Group in 2021, said the acquisition marks a full circle moment, with NW Computing rounding out its current customer offerings.

10. AirTrack, maker of leading IT data quality management technology, joins the Atlassian family

With AirTrack, Jira Service Management will provide customers with a fuller, more accurate picture of all critical assets, minimizing operational risks, costs, and attack surfaces. We’re delighted to announce Atlassian has acquired AirTrack, maker of leading IT data quality management technology. This acquisition builds on Atlassian’s previous investments designed to help enterprises take a comprehensive approach to asset and configuration management. The combined offering – AirTrack + Jira Service Management – will enable enterprises to better account for and track all critical assets within their organizations, minimizing operational risks, costs, and attack surfaces.

11. Mclean Delmo Bentleys expands into regional Victoria with the acquisition of Riverwood

National accounting and consulting firm Mclean Delmo Bentleys has acquired Woodend-based boutique Riverwood. The Melbourne branch of mid-tier accounting and consulting network Mclean Delmo Bentleys has expanded into regional Victoria with the addition of boutique advisory Riverwood Group, which has outlets in Woodend and Kilmore north of Melbourne. The acquisition follows a capital injection from financial services investment firm AZ Next Generation Advisory earlier this year, with a view to accelerating growth through further bolt-on opportunities. Established in 2004 in the town of Woodend roughly halfway between Bendigo and Melbourne, Riverwood has since grown to a team of around 15 advisors and administrative assistants, including directors Caroline Johnston, Ross Collier, and Paul Paikos. The firm’s clientele includes manufacturers, wholesalers, retailers, and primary producers, who will now benefit from an expanded suite of services under the Mclean Delmo Bentleys banner.

12. Webcentral sells hosting business for $165M, rebrands to 5G Networks

Publicly listed Webcentral is set to sell off its web and email hosting businesses for a total transaction value of $165 million. The Melbourne-based IT provider has entered into binding agreements with a European investment group led by Oakley Capital to sell two-thirds of its Webcentral and Melbourne IT domain name registry, consumer hosting and email hosting services business by November. As a result of the sale, Webcentral will change its name to 5G Networks Limited and continue carrying on its remaining businesses as a telecommunications carrier and owner of infrastructure servicing enterprise and wholesale customers.  According to a notice on the Australian Securities Exchange (ASX), Webcentral will use the $115-million sales cash to pursue “EBITDA accretive acquisitions” of complementary technology, cloud hosting and managed IT businesses and to “support future growth initiatives”. As part of the deal, Oakley Capital will agree to purchase $12 million worth of cloud services and managed support from Webcentral