March M&A blog: A dozen deals in the Services sectors including an SCD Advisory deal

2. KPMG adds weight to South Pacific ambitions with acquisition in Fiji

The Fijian branch of professional services firm KPMG is making good on last year’s promise of a significant expansion with the acquisition of local digital transformation provider Acton, while the firm also readies to move into brand new Nadi offices next month. KPMG Fiji together with the network’s Papua New Guinea outlet integrated with KPMG Australia’s Enterprise practice under a KPMG South Pacific banner in the middle of 2021.

3. Awaken invests in performance media with Agnes Media acquisition

Independent full-service agency, Awaken, has acquired digital marketing firm Agnes Media, with the purchase set to finalise by the end of March. The move reinforces Awaken’s intention to build-out its performance media credentials in Australia, as well as the US and UK, where Agnes Media also operates. The deal will see the transfer of Agens Media’s client stable, including a number of fintech brands and Hill Smith Wines (previously Yalumba Wines), as well as three senior staff members and several contractors who have already joined the Awaken team. Agnes Media founder Charlotte Ward will continue as Awaken’s marketing director, working with both teams to ensure a seamless transition.

4. Interactive acquires Slipstream Cyber Security

Managed services provider Interactive has ramped up its cyber expertise with the acquisition of Perth-based Slipstream Cyber Security. Founded by Brian Smith in 2017, Slipstream Cyber Security offers 24/7 cyber defence with an Australian-based cyber security operations centre, managed detection and response and penetration testing. It has operations in Sydney and Melbourne and claims to be the first in Australia to gain a CREST accreditation. The consultancy has been a partner of Interactive since 2019.

5. Aussie fintechs come together as payments provider Cuscal buys data services platform Basiq

Two Australian fintechs will become one after payments provider Cuscal today announced the acquisition of Consumer Data Right (CDR) platform Basiq for an undisclosed amount. Based in Sydney, Cuscal has been an independent provider of payments, banking and regulated data systems for more than 50 years, and services clients like AMP (ASX: AMP), Australia Post and Square. The deal involves Cuscal taking a controlling interest in Braavos Corporation – the parent company of data and open banking API platform Basiq – subject to ‘customary conditions’. According to Cuscal, the move represents a ‘significant and strategic’ investment in the future state of the open data economy. Based in Manly, Sydney and founded by CEO Damir Cuca in 2016, Basiq operates a platform that enables businesses to build financial solutions and facilitates the relationships between fintechs and consumers by giving them access to consented financial data and executing smart data-driven payments. According to Cuca, the acquisition would be positive news for startups given the recent investment downturn by facilitating a pathway to develop strong payment capabilities.

6. TYPSA incorporates the Australian engineering company EDG Consulting into the Group

TYPSA is excited to welcome EDG Consulting to the Group. EDG Consulting, with offices in Brisbane and Melbourne, delivers a broad range of services and practical solutions including engineering design services, advice and geosciences services, forensic investigations and expert opinion over a wide range of market sectors. Australia has been a key market for TYPSA since the opening of its subsidiary in 2016, and has participated in metro, roads, ports, wind and solar farms projects in the region. TYPSA is currently playing a significant role in a number of contracts for Transport for New South Wales (Sydney), acting as the Independent Certifier for the Martin Place, Victoria Cross and Crows Nest new Metro stations, and preparing the detailed design for the Sydney Metro West Central Tunnelling Package. EDG provides design, engineering, advice and geosciences services to private, public and government clients over a wide range of sectors. The experience of EDG staff extends to many overseas locations, including NZ, PNG, throughout Asia, the UK and North America. EDG’s highly skilled and qualified team uses their deep experience in design and construction to develop practical solutions over the full project life cycle: from project feasibility to implementation and even decommissioning, and throughout all stages of design.

7. Atturra expands managed services portfolio with Somerville deal

IT services and consulting firm Atturra has continued its steady string of acquisitions with the purchase of Sydney-headquartered managed services provider Somerville in a cash and shares deal worth up to $19 million including bonuses. Expected to complete at the end of the month, the acquisition will see Somerville CEO and founder Craig Somerville join the Atturra team alongside sales and education directors Adrian Toole and David La Bozzetta. Established by Somerville way back in the early 80s, the company operates out of offices in Sydney, Melbourne and Brisbane and provides a wide range of managed services to the corporate and education sectors, including offerings in cloud, connectivity, security, and software lifecycle management among other areas. According to Atturra, Somerville’s IT solutions and managed services mix supports more than 285 independent schools across Australia.

8. Systra Strengthens its expertise in tunnels with the acquisition of Bamser

SYSTRA ANZ is pleased to announce the acquisition of Bamser, an Australian based infrastructure advisory firm providing multi-disciplinary services to the transport, utilities, mining and energy sectors. With offices in QLD, NSW and VIC, Bamser have delivered city shaping projects extensively across Australia and into Asia. Renowned for their excellence in underground engineering, the transaction boosts SYSTRA’s position as a leading global player in complex tunnelling, coming after the 2021 acquisition of SWS, a leading tunnelling design firm based in Italy. STRA is one of the world’s leading engineering and consulting groups specialised in public transport and mobility solutions. For more than 65 years, the Group has worked alongside cities and regions, contributing to positive development by creating, improving and modernising their transport infrastructures. Established in 2008 with offices in QLD, NSW and VIC, Bamser provides frontline advisory services on complex tunnelling, trenchless and infrastructure projects across Australia and internationally.

9. Macquarie Capital injects $150m into PE-owned IT services player ORRO

Macquarie Capital has bought a small stake in private equity-owned IT services company Orro Group, backing the business as part of a $150 million-plus raising. The company was formed in 2019 when Sydney-based PE firms Liverpool Partners and Parc Capital teamed up with CustomTec founder Damian Higgins to create a business specifically designed to acquire other IT services companies. Rodd Cunico has led Orro Group for three years, having formerly been the CEO of Dimension Data. Its first acquisition was Mr Higgins’ CustomTec and following that it has completed seven other deals, with the combined companies known as Orro Group. The company specialises in three main fields – digital networks, cyber security and cloud computing – and it is overseen by the former chief executive of Dimension Data, Rodd Cunico. The raise was led by Macquarie’s principal finance team and the bulk of the capital is debt, but as part of the transaction the investment bank took a small equity stake in the business.

10. DC Two sells off modular business for $3M

Data centre provider DC Two has sold off its “non-strategic” modular business for $3 million to focus on its core offerings after acquiring managed IT and cloud services provider Attained late last year. The sale was made in December to DComm, A Queensland-based blockchain platform that claims it has invested over $2 million to build a layer 1 blockchain protocol for the “tokenisation of assets”. Expected to finish by early to mid-Q4 of FY23, DComm’s infrastructure division has a pipeline of renewable energy products worth $3.5 million in WA, with the sale expected to contribute towards this.

11. Employment screening company VerifyNow acquired by US giant Accurate Background

One of the world’s largest employment screening companies servicing the likes of Sephora, Nestle and Randstad has acquired Canberra-based VerifyNow today for an undisclosed sum. Accurate Background’s buyout comes eight months after it successfully snapped up UK-based Vero Screening, with the latest move supporting its expansion strategy into Australia. Founded in 2019, VerifyNow mainly services SMEs and government clients, offering psychometric and aptitude testing, Australian and international police checks, identity verification, employment history verification, reference checks, and more. Under the agreement, VerifyNow will continue to be led by CEO and co-founder Khai Ngo, who will join Accurate Background’s leadership team post-acquisition.

12. A new focus on profits hasn’t stopped K1-backed Cyara’s M&A push

The Melbourne-born tech company that jointly holds the record for the largest venture capital raise completed by an Australian business, Cyara, has acquired an Irish communications testing company, in a deal understood to be worth upwards of $US100 million ($150 million). The deal, the terms of which were undisclosed, comes after the local customer experience assurance company raised $US350 million in February last year from US-based growth capital firm K1 Investment Management, securing its spot in local start-up legend. The acquisition of Spearline enables Cyara to expand into new fields of customer service technology. Alok Kulkarni’s Cyara helps businesses automatically detect problems in their customer experience software and processes. Cyara has created software that automatically tests the performance of a company’s customer service technologies, such as call centres and chatbot interfaces, and detects if there are bugs in the processes. The Spearline deal gives it capability in toll and toll-free phone number testing, as well as web-based real-time communications – an emerging field of online communication based on an open-sourced web protocol that enables video chat, file sharing and screen sharing without installing plugins or third-party software.