Advisory and technology services company Atturra has announced it will acquire fellow ASX-listed managed services provider Cirrus Networks for $49 million.
Atturra called Cirrus a “strong strategic fit”, with the acquisition expected to further expand its managed services expertise and add to its recent buy of Somerville.
Cirrus will also bolster Atturra’s presence in Canberra, Western Australia and Victoria, as well as increase its government and enterprise customer base.
“The acquisition of Cirrus has strong strategic and cultural alignment with Atturra’s industry and service capabilities and is a positive step towards Atturra’s vision to be Australia’s leading advisory and IT solutions provider," Atturra chief executive Stephen Kowal said.
Kowal said Cirrus brings a wealth of expertise in the government and energy and resources industries, having serviced some of the leading names across these sectors respectively.
The acquisition will be done through a scheme implementation deed where Atturra will wholly acquire Cirrus for 5.3 cents per share or $49.3 million.
This represents a 29.3 per cent premium to Cirrus’ last close price.
Cirrus’ board of directors unanimously recommended that shareholders vote in favour of the acquisition unless a superior proposal is made.
“The board of Cirrus believe this transaction represents a compelling opportunity for Cirrus shareholders to realise immediate value and further upside potential via Atturra shares," Cirrus managing director Chris McLaughlin said,
“We believe our deep expertise in our markets and our focus on delivering outstanding outcomes for our clients will be enhanced by the breadth of resources and strong market reputation that Atturra brings."
"Working with Atturra will provide excellent career opportunities for our team and we look forward to partnering with the organisation going forward.”
The acquisition is expected to be completed in December 2023 subject to approvals by shareholders and the courts.
Atturra said the acquisition of Cirrus would create one of the largest Australian-sovereign advisory and technology solutions providers, with increased operational and geographic scale.
The company added the two firms represent two of the few remaining independent, Australian-owned ICT services companies given the broader sector consolidation, and that combining their strengths - while remaining a true sovereign player - represents a key competitive advantage.
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