2021's top IT channel mergers and acquisitions, so far

Consolidation in the Australian IT channel has not showed signs of slowing down during the first half of 2021.

A number of resellers, distributors and vendors were involved in some of the biggest mergers and acquisitions between January to June this year.

Click through the arrows to navigate through the slides.

Did we miss any notable mergers or acquisitions? Email us at crneditors@crn.com.au

7 January

MSP First Focus IT acquires Brisbane-based Ordyss

Sydney-based managed services provider First Focus IT acquired Brisbane-based ICT solutions specialist Ordyss for an undisclosed sum.

First Focus said at the time the deal would shore up its expertise in service desk solutions, strategic consulting and recruitment services. The arrangement marks First Focus' second major acquisition, after it bought Flexnet last year.

First Focus chief executive Ross Sardi said Ordyss would act as the group’s government and enterprise specialists. The combined company had 220 total staff at the time of publication.

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11 January

Cognizant acquires Sydney-based Servian

Global systems integrator Cognizant acquired Sydney-based enterprise consulting services provider Servian for an undisclosed sum.

Servian specialises in data analytics, artificial intelligence, digital services, experience design and cloud. Some of its vendor partners include Google, Microsoft, AWS, Salesforce, Snowflake, Oracle, HashiCorp, Talend, Informatica and Red Hat.

Cognizant said the acquisition expanded its integrated, end-to-end digital transformation capabilities in Australia and New Zealand.

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1 February

Optus completes Amaysim acquisition

Optus finalised its $250 million purchase of Amaysim and acquired the mobile virtual network operator’s (MVNO) 1.2 million customers.

The deal closed after all conditions precedent to the acquisition were met, the telco said in a statement. The MVNO’s shareholders approved the sale last week which was the last hurdle for the two companies to seal the deal.

Optus said Amaysim would remain a standalone brand under its ownership.

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2 February

DXC rejects Atos' US$10b acquisition offer

DXC Technology announced it has rejected a US$10 billion acquisition offer from French integrator Atos.

The global systems integrator said the offer was “determined to be inadequate and lacking certainty”.

Both sides agreed to discontinue further discussions after sharing “certain high-level information”.

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3 February

Intuit acquires OneSaas to bolster omni-channel sales solution

Intuit acquired Aussie-born OneSaas, to bring omnichannel sales data integration into the new QuickBooks Commerce product. 

OneSaas is an infrastructure platform that normalises data from across marketplaces, point-of-sale, fulfilment, and other categories of ecommerce platforms for consumption by QuickBook Commerce. 

Based in Sydney, OneSaas was founded in 2010 by current chief technology officer Corneliu Tusnea and has been an Intuit partner and part of the QuickBooks App Store since 2014.

Click here to read the full story. 

10 February

East coast MSPs Inspired Techs, Answers IT merge

Brisbane-based managed services provider Answers IT merged with NSW Central Coast-based Inspired Techs to form Anspired.

The merger brings together a combined 23 years experience in cyber security solutions, including managing threats and providing protected IT solutions.

Answers IT’s Brendan Gibson and Inspired Tech’s Leon Black brought their businesses together to combine their different skill sets to address the increasing IT risks of conducting business.

The combined business now offers services including Protected Service Agreements, Cloud Solutions, Managed Security Devices and Disaster Recovery.

Click here to read the full story.

18 February

Microsoft partner Clade Solutions acquires Brisbane-based Simient

Sydney-based tech consultancy Clade Solutions acquired Queensland and Northern Territory focused MSP Simient.

The deal came five months after Clade bought a 50 percent stake in Simient in September 2020.

Clade also established a new Microsoft ERP practice and a suite of financial tech services to supplement Microsoft Dynamics 365 Business Central.

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2 March

Cisco wraps US$4.5b Acacia Communications deal

After a tumultuous two months, Cisco Systems is now the owner of Acacia Communications Inc., after a majority of Acacia’s shareholders approved the deal.

The networking giant announced that it completed its US$4.5 billion Acacia acquisition on Monday after inking a new deal with Acacia in January. Together, Cisco said that Acacia’s technology will strengthen its innovation capabilities across software, silicon and optics, and enhance Cisco’s “Internet for the Future” strategy.

Acacia employees will join Cisco’s Optics business, as part of the Mass-Scale Infrastructure Group, led by Senior Vice President and General Manager Jonathan Davidson.

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2 March

Arq Group acquires Sydney-based consultancy Diaxion

Digital services consultancy Arq Group acquired Sydney-based consultancy Diaxion for an undisclosed sum.

The deal bolsters Arq’s capabilities in advisory, government digital strategy and transformation as well as its footprint in Canberra through Diaxion’s experience and connections with Government departments.

Arq claimed the merged company would be the only Australian full-service tech, data and digital consultancy, as it now can offer in-house advisory capabilities and bolstered professional services through Diaxion.

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4 March

Xero acquires workforce management vendor Planday

Xero acquired Denmark-based workforce management platform vendor Planday for €155.7 million (A$241.8 million).

The acquisition helped bolster Xero’s small business platform through Planday’s simplified employee scheduling. It also boasts 350,000 users across Europe and the United Kingdom.

Planday’s platform helps deliver a real-time view of staffing needs and payroll costs, alongside key business performance metrics. It integrates with Xero and other accounting software, as well as third-party workforce-related apps.

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9 March

Vocus to be acquired for $3.5 billion by MIRA-Aware Super consortium

Telecommunications company Vocus agreed to be acquired by a consortium of Macquarie Infrastructure and Real Assets (MIRA) and Aware Super for $3.5 billion.

The decision came one month after MIRA first approached Vocus with an indicative and non-binding proposal for $5.50 per share. Aware Super joined the consortium a few weeks later.

Vocus’ board unanimously recommended that shareholders vote in favour of the acquisition unless a superior offer is made. The scheme meeting is set for sometime in June this year and the transaction is expected to close by July.

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9 March

Bluechip Infotech to merge with DNA Connect to create new 'powerhouse' distributor

Bluechip Infotech announced it has merged with fellow distributor DNA Connect to form what it called a new “powerhouse” distributor in Australia.

The merger combines Bluechip’s SMB focus with DNA’s background with enterprise businesses, while also expanding each other’s product offerings.

“The merger positions both companies to be stronger and accelerate the growth by providing more solutions to a wider combination of channel partners and segments,” Bluechip Infotech managing director Johnson Hsiung said.

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16 March

Tesserent acquires Secure Logic's managed services business for $10 million, stock

IT security specialist Secure Logic sold its managed services business to ASX-listed security services firm Tesserent for $10.75 million and 42 million shares.

The deal will bolster Tesserent’s Government division and provide access to a 24x7 security operations centre in Sydney.

Secure Logic has existing relationships with the New South Wales Government and a number of Federal Government departments and agencies. It also has some international and domestic corporate and financial institutions as customers.

Click here to read the full story.

18 March

Spirit Technology to offload consumer broadband business

Spirit Technology Solutions put its consumer broadband business on the market as it shifts focus to business customers.

Spirit’s consumer business involves broadband services to customers in large residential apartment buildings across Melbourne, Brisbane and the Gold Coast. It covers 97 buildings and some 18,000 connections.

The divestment is part of Spirit’s shift to focus on the business market, ranging from SME to large enterprises, specialising in security, cloud and IT services.

Spirit has engaged accounting firm BDO, specifically partner Tony Schiavello, to conduct a formal sale process on behalf of the company.

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23 March

Synnex, Tech Data merge to create US$57B distribution titan

Two of the world’s largest IT distributors joined forces to create a USUS$57 billion giant with more than 150,000 customers and 22,000 employees.

The proposed USUS$7.2 billion merger of publicly traded Synnex and private equity owned Tech Data will be led by Tech Data CEO Rich Hume, (pictured) with Synnex President and CEO Dennis Polk serving as executive chair of the company’s board. The combined company will be 55 percent owned by Synnex shareholders and 45 percent owned by Apollo Global management, which bought Tech Data for USUS$5.4 billion in June 2020.

“This is transformational for Tech Data, Synnex and the entire technology ecosystem,” Hume said in a statement. “Together, we will be able to offer our customers and vendors exceptional reach, efficiency and expertise, redefining the experience and value they receive.”

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24 March

Xero acquires e-invoicing infrastructure provider Tickstar

Accounting software vendor Xero acquired e-invoicing infrastructure company Tickstar for up to $22.8 million.

Based in Sweden, Tickstar is a consulting and cloud services provider that specialises in e-invoicing infrastructure and expertise to governments and businesses globally.

Xero is an existing Tickstar customer, and the acquisition means the company keeps continued access to e-invoicing networks while Tickstar gets additional resources to grow its business and service its current customers.

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24 March

Fast50 company Insync Technology acquired by Dutch Microsoft partner Rapid Circle

Brisbane-based managed services provider Insync Technology was acquired by Netherlands-headquartered Microsoft partner Rapid Circle for an undisclosed sum.

The deal brought together Insync’s expertise on teamwork, security, calling and meeting room solutions with Rapid Circle’s managed services for its midmarket and enterprise customer base.

Rapid Circle, whose local offices are in Melbourne,  added 45 new staff from Insync, including founders Nathan Belling, Damien Margaritis and Stuart Moore. The three will “play an active role” in Rapid Circle’s day-to-day operations moving forward.

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31 March

Spirit Technology acquires Sydney-based telco gear company Nexgen

Spirit Technology acquired telecommunications equipment company Nexgen for $50 million, which the company called its largest acquisition to date.

Based in Sydney, Nexgen provides phone systems, printers, security cameras and cybersecurity services to small and medium enterprises. The company is also an NBN retail service provider and also resells other fibre providers.

Spirit said the acquisition brings in more than 5,500 new B2B customers and 100 new sales staff, and Nexgen is expected to generate $36 million in revenue.

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1 April

Rhipe acquires EMT distribution for $11m upfront

Rhipe acquired 100 percent of security distie EMT Distribution for $11 million upfront for the Australia and Asia based operations, with a further payment of up to $2 million based on financial performance after 24 months.

Completion of the acquisition of EMT’s Middle East based operations is expected at the start of next financial year with terms to be disclosed post-audit.

Rhipe chief executive Dominic O’Hanlon said, “EMT Distribution has an incredible track record in delivering software security products and solutions via their distribution channels. By combining EMT’s expertise in security solutions with Rhipe’s reach, we will be able to offer Rhipe partners across APAC effective solutions to protect against growing threats around cybersecurity. 

Click here to read the full story.

1 April

Wipro acquires Melbourne-based Ampion

Global systems integrator Wipro acquired Melbourne-based managed services provider Ampion for an undisclosed sum.

Based in Melbourne, Ampion specialises in cyber security, DevOps and quality engineering services. The company was formed last year following the merger of MSPs Revolution IT and Shelde.

Wipro said adding Ampion’s offerings in engineering transformation, DevOps and security consulting services would bring scale and market agility to respond to the growing demands of customers.

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6 April

Fujitsu Australia acquires Melbourne data analytics consultancy Versor

Fujitsu Australia has acquired Melbourne-based data analytics specialist management consultancy Versor for an undisclosed sum.

Versor provides data engineering, advanced analytics and data sciences services powered by artificial intelligence and machine learning to underpin its digital transformation consulting services.

The company has clients across the public sector, mining, retail, health, utilities, financial services, and entertainment industries.

Fujitsu said the acquisition was part of the company’s aim to provide human-centric technology growth through digital transformation.

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7 April

Melbourne telco Binary Networks acquired by Comms Group

ASX-listed cloud communications and telco services company Comms Group acquired Melbourne-based Binary Networks for $1.8 million.

Binary Networks provides telco services to small to medium-sized enterprises (SMEs) via a Layer-2 data network with points of presence in Sydney, Melbourne and Brisbane. It also operates a fixed wireless service in the rural Queensland town of Goondiwindi.

Binary also has engineering capabilities with data networks, advanced voice services and internet protocol (IP).

Comms Group also expands its head office headcount and bolsters its sales capabilities with the addition of Binary Networks’ staff. Binary founder Michael Diamond also joined Comms Group as head of systems and systems integration.

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8 April

FTS Group buys Brisbane IT firm ESAM Consulting

Brisbane-headquartered IT services business ESAM Consulting joined FTS Group following its acquisition for an undisclosed amount.

ESAM was fully integrated into Galaxy42, FTS Group’s IT consultancy business, which specialises in TechOne’s ERP solutions.

“The synergy between ESAM and Galaxy42 in terms of our approach to provide specialised services to the higher education sector made this an obvious alignment of our organisations. We are delighted to be joining the Galaxy42 and FTS Group,” said ESAM Consulting director Mark Dacey.

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8 April

Nexion acquires Perth telco Blue Sky Telecom

Colocation and networking provider Nexion acquired Perth-based telecommunications provider Blue Sky Telecom for $2 million in stock plus earn-out incentives.

Blue Sky is a national telco and network solutions provider with a focus on mine-site camps across Western Australia. Some of its offerings include an international Hosted Voice Platform; a Multiprotocol Label Switching (MPLS) network; internet via NBN, fibre, fixed wireless and 4G; a national satellite network; and managed services like Wi-Fi, SD-WAN and cybersecurity management.

The No. 14 placed company in the 2020 CRN Fast 50 said the deal is part of its ongoing expansion strategy, which involves acquiring local ICT service providers that bring relevant skills and expertise, while also fuelling growth.

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16 April

MYOB's acquisition of Sydney ISV GreatSoft gets go-ahead from regulators

Australian accounting software vendor MYOB was given the go-ahead to acquire Sydney-based ISV GreatSoft.

The Australian Competition and Consumer Commission (ACCC) announced it won’t oppose the deal as it found the transaction is not likely to substantially lessen competition.

The decision comes more than a month since the ACCC expressed concerns about the acquisition, particularly about the competition in the accounting software market, as both companies supply practice management software to medium-to-large accounting firms. MYOB first announced the acquisition in October 2020.

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27 April

Deloitte acquires Canberra-based Salesforce partner Soda Strategic

Deloitte acquired Canberra-based Salesforce partner Soda Strategic, which is set to integrate with Deloitte Digital a the start of next month. 

Founded in 2016 by chief executive Angelo Paonne, Soda Strategic’s client base spans government, health, and not-for-profit sectors.

The team of 30 will join Deloitte Digital and Paonne will become a Deloitte Digital partner.

The terms of the agreement have not been disclosed.

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27 April

Sydney's itGenius acquires fellow Google Cloud partner Onsite Helper

Sydney-based Google Cloud partner itGenius has acquired a controlling stake in Melbourne-based IT consultancy Onsite Helper.

Onsite Helper is a fellow Google Cloud partner that works with clients in the financial, legal, hospitality and retail sectors, servicing those based in Victoria.

The two companies will continue operating separately and won’t be integrated at this stage, with Onsite Helper founder Adrian Cosman-Jones remaining at the helm as chief executive.

itGenius said the partnership with Onsite Helper would help both companies better support medium-sized businesses in the burgeoning mid-market for Google Cloud.

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28 April

Brisbane IT consultancy Integral acquires The OTM Company

Brisbane-based IT consultancy Integral Technology Solutions acquired digital services agency The OTM Company for an undisclosed sum.

OTM said the two companies aimed to create an alternative to the traditional brand or digital agency model and the ICT or technology services provider model, covering customer needs across brand, customer, digital and ICT.

OTM will also remain as a standalone brand with clients continuing to work with the team without disruption. Its team will co-locate with Integral’s staff at its Brisbane office.

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4 May

Accenture acquires Aussie Schneider Electric partner Electro 80

Accenture acquired Australian operational technology (OT) and IT services provider Electro 80 for an undisclosed sum.

Headquartered in Perth, Electro 80 works mainly with resources clients in Australia, including mining, energy, engineering, construction and utilities companies, helping them modernise operations and become more efficient in areas of manufacturing and production.

Accenture said the acquisition comes as it expects Australia’s resources industries will ramp up transformation efforts following the operational disruption caused by COVID-19.

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5 May

Tesserent buys stakes into Secure Logic spinoffs TrustGrid and AttackBound

Cybersecurity services provider Tesserent acquired a 25 percent stake in identity solutions specialist TrustGrid and cyber intelligence platform AttackBound, both spinoffs of Sydney-based managed service provider Secure Logic.

The deal was done through Tesserent’s Innovation division and via a shareholder’s agreement and a share/sale purchase agreement signed in late April.

Tesserent said it paid $3 million for the stake, comprising a 50-50 split between cash and Tesserent stocks.

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10 May

Melbourne's Crash Technology acquires ITLX

Melbourne-based Crash Technology acquired fellow managed services provider ITLX for an undisclosed sum.

The deal was announced by Crash via its social media channels, calling it a new era for the company, and also welcomed the ITLX team to the fold.

“Crash Technology are excited to announce we have joined forces with ITLX,” Crash managing director Dean Attard posted on LinkedIn.

“Both Melbourne based MSPs have been servicing customers for over 20 years and are looking forward to the beginning of a new era.”

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27 May

Accenture snaps up Industrie&Co

Accenture acquired cloud consultancy Industrie&Co for an undisclosed sum.

The purchase marks the third in the last few months for the Ireland-based services giant following the purchases of Electro80 earlier this month, Swedish cloud vendor Cygni in March and cloud analytics and cloud-native artificial intelligence company Core Compete in April.

The company has offices in Sydney, Melbourne, Hong Kong and Singapore, and Accenture said the acquisition expands its “cloud first capabilities in delivering cloud native services for clients, particularly within financial services.”

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2 June

Sage sells Australia, Asia business to Access Group

Payroll solutions provider Sage Group’s Australia and Asia business was acquired by UK-headquartered The Access Group.

The acquisition includes the company’s Australian HandiSoft accounting and MicrOpay and WageEasy compliant payroll solutions as well as EasyPay in Singapore and UBS Accounting in Malaysia.

Arlene Wherrett will take over the role of Sage Asia Pacific vice president and managing director from Kerry Agiasotis, who will transition into the role of Access Group’s president of Asia Pacific. Wherrett previously held the title of VP and MD for the Asia region.

Click here to read the full story.

7 June

Vonex acquires MNF Group's SMB, residential business for $31 million

Telecommunications services company Vonex has acquired a part of MNF Group’s direct business for $31 million.

MNF has offloaded its small business and residential business, which includes cloud phone,
mobile and internet services under the MyNetFone brand. The deal does not include the MyNetFone name.

The sale comes as MNF looks to simplify its business and focus on its Symbio wholesale business. MNF acquired VoIP wholesaler Symbio Group in 2012.

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8 June

Software firm Ixup acquires assets of collapsed Data Republic for $3 million

Australian secure data software company Ixup acquired the assets of the recently collapsed data-sharing startup Data Republic for $3 million.

Backed by the likes of Australian banks ANZ, NAB, Westpac and Singtel Innov8, Data Republic developed digital infrastructure that lets companies exchange data safely and securely. The company called in administrators in mid-May after a failed capital raise.

Ixup said the acquisition of the assets complement its current technology and products and also positions the company as the technologically leading Australian secure data
collaboration provider. Ixup said it would also continue working with Data Republic’s previous customer base.

Click here to read the full story.

8 June

Superloop to buy out Exetel for $110 million

Superloop acquired Exetel, Australia’s largest independent ISP, for a total of $110 million, comprising $100 million cash and $10 million in Superloop shares.

In Superloop's ASX announcement, the company said it was raising the cash needed for the acquisition partially through debt, and partially through the sale of equity.

The acquisition is expected to be completed in late July, should all conditions be met. All Exetel employees will transfer to Superloop and both brand names will be kept in use.

Click here to read the full story.

10 June

Hubify drops $2.5 million on Sydney-based ICNE, Smile Telemarketing

Hubify finalised the acquisition of two business, Sydney-based cloud managed service provider ICNE and telemarketing and lead generation specialists Sennah (known as Smile Telemarketing). 

The ASX listed telco services company paid $2 million for ICNE, and 1x annual EBITDA for Sennah (Smile) with a minimum of $250,000 and a max of $750,000. Both will be paid for in 50 percent cash and 50 percent shares.

Hubify said that ICNE is its “anchor” MSP acquisition and will enable the offering of an end to end IT, managed service, cyber and telecommunications solution to the SME market. ICNE is forecast to contribute $600,000 in EBITDA in FY22.

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16 June

Telstra acquires Mediacloud Australia

Telstra acquired Perth-based web hosting and cloud services provider Mediacloud Australia for an undisclosed sum.

The deal would provide Telstra’s global broadcasting arm Telstra Broadcast Services (TBS) with software-defined and cloud-based capabilities, as well as a number of media cloud delivery experts and a Master Control Room in the United Kingdom.

As part of the acquisition, Australian free-to-air TV channel SBS also renewed its playout contract for MediaCloud services for seven years and will be a TBS customer throughout its duration.

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21 June

Swoop acquires regional Victoria-based network operator Speedweb

ASX-listed Swoop Telecommunications acquired Morwell, Victoria-based broadband network operator Speedweb for $1.75 million.

Speedweb, also known as Kallistrate Pty Ltd, operates its own wireless broadband network through some 50 towers and has 1,800 active services.

The company’s network covers the towns of Morwell, Moe, Traralgon, Trafalgar, Churchill, Newborough and Walhalla in Victoria’s Gippsland region. The network also borders the existing Swoop network in the region.

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24 June

Broadband infrastructure provider DGtek acquires Melbourne fibre provider FG Telecom

Fibre provider and NBN Co competitor DGtek has acquired FG Telecom, a Melbourne-focused fibre network company, expanding DGtek’s network coverage by over 25 percent.

The broadband infrastructure provider said the acquisition makes it the only network with “triple geography redundancy and diverse paths to Port Melbourne’s major data centres,” adding that its eventual goal is to reach one million homes across Australia by 2024.

The company aims to capitalise on the demand for wholesale fibre services and offer direct connectivity between the core data centres in Port Melbourne. 

Click here to read the full story.

28 June

Document solutions vendor Nitro Software acquires PDFpen software from US-based Smile Inc

Australian-born document productivity vendor Nitro Software acquired the document software technology PDFpen for $6 million.

PDFpen is a suite of PDF productivity applications for Apple Mac, iPhone and iPad devices, including digital signatures, Optical Character Recognition (OCR), PDF editing and cloud storage.

The technology was acquired from US-based Smile Inc., which also sells communications software platform TextExpander.

Click here to read the full story.

28 June

Swoop acquires Perth telco Community Communications

Wholesale network infrastructure provider Swoop acquired Perth-based Community Communications (ComComs) for an undisclosed sum.

ComComs operates a fixed wireless network for both residential and business customers in the Perth metropolitan area with 14 towers across the area. The company also provides NBN and voice services.

ComComs’ network joined Swoop’s fixed wireless network in Perth, which was acquired from Perth telco NodeOne earlier this year. Swoop’s tower count also increases up to 88 within Western Australia.

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30 June

Telstra sells part of towers business for $2.8 billion

Telstra sold 49 percent of its telecommunications towers business, InfraCo Towers, to a consortium of superannuation funds for $2.8 billion.

The stake was sold to a consortium comprising super funds Future Fund, Commonwealth Superannuation Corporation and Sunsuper.

Telstra chief executive Andrew Penn said the deal was a significant milestone for its T22 program and “an acceleration of Telstra’s strategy to unlock value” in the assets.

“Our T22 strategy is delivering on multiple fronts and I am proud of what we have achieved,” Penn said.

Click here to read the full story.