Atturra to buy Melbourne Microsoft partner for $6.5m

Atturra is set to acquire specialist Microsoft partner Hammond Street Developments (HSD) for $6.5 million, through its subsidiary Veritec. 

HSD is a Melbourne-based development and consulting services company, providing services to the government sector.

It has offices in Sydney, Canberra and Adelaide as well. 

Atturra will pay $6 million in cash and $500,000 in shares.

There is also potential for an earn-out/post completion consideration of up to $2 million in cash subject to HSD achieving performance targets during the financial years ending in 2023 and 2024.

“The addition of HSD to the Atturra family is highly beneficial for our clients and shareholders and demonstrates our ongoing commitment towards growing our business in the government sector, in particular the Victorian public sector and to Microsoft, one of our main technology partners,” Atturra chief executive officer Stephen Kowal said.

In 2021, Atturra, through subsidiary Veritec, rolled out a new digital platform for the Department of Agriculture, Water and Environment (DAWE), aimed at streamlining the application process for waste exporters under a new recycling regime.

Specialising in Microsoft services, HSD has a significant portfolio of Australian government clients which will enhance Atturra’s existing public sector portfolio and Microsoft services client base.

Kowal told CRN, "HSD provides extensive skills and experience in delivering successful outcomes for Federal and State Governments, which is complementary to Atturra and extends our ability to deliver large and complex programs of work. In addition, HSD brings some new clients to Atturra."

Some of HSD's customers include Australian Bureau of Statistics, Australian Electoral Commission, and several government departments, such as the Department of Education and Training and the Department of Finance. 

"HSD have a very strong client focus which is evident in their recurring revenues across their top 10 clients, and I am looking forward to working with [HSD CEO Narendra Tomar] and the HSD team.”

Commenting on future plans for Atturra, following the acqusition, kowal told CRN, "We are continuing growth within the Government and Critical National Infrastructure (CNI), amongst other industry segments. HSD supports this and provides Atturra with additional clients, IP and panel access to State Governments in Victoria, South Australia and Tasmania. Atturra has a focused effort to expand its government business over the next few years

Early last year, Atturra announced that it acquired Brisbane-based MSP and ERP specialist Kettering Professional Services for $3 million upfront, and bought Brisbane-based IT firm ESAM Consulting in April 2021.

In 2021, FTS group rebranded to Atturra, consilidating its eight subsidiaries under one brand. The company also reported revenue of $61.9 million for the first half of the 2021-22 financial year, an increase of 44 percent over the same period the previous year.

Atturra was involved in a bidding war against Brennan IT for MOQ Limited in August 2022.

The company initially planned to acquire MOQ on 30 June, however, Brennan offered $23.3 million, outbidding Atturra.