Atturra to buy Somerville in multi-million dollar deal

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Atturra to buy Somerville in multi-million dollar deal
Craig Somerville, Somerville Group

Sydney-based technology services provider Atturra has made plans to acquire Sydney IT solutions provider Somerville Group for $15 million in cash and 1,647,059 Atturra shares.

At the current ASX day range of $0.93 to $0.97, the shares would add between $1.532 to $1.598 million to the cash offer.

The Share Sale and Purchase Deed (SSPD) includes an earn out/post-completion consideration of up to $2.6 million in cash, subject to Somerville achieving performance goals for the FY23 and FY24 financial years.

Headquartered in Sydney with offices in Melbourne and Brisbane, Somerville provides enterprise-grade managed services including cloud, connectivity, modern workplace, security, and hardware and software lifecycle management.

Somerville holds a strong position in the education sector, supporting over 285 schools in Australia.

The acquisition will mean Atturra can deliver the entire technology stack, from application to infrastructure, accelerating business growth and supporting the expansion of operations into new technologies and markets. 

“The acquisition of Somerville will be significant, as it will not only provide Atturra with a broad-based managed services capability to facilitate large end-to-end projects, but it will also strengthen our position within the Australian education sector," Atturra chief executive Stephen Kowal said.

“We are excited to have the opportunity to bring Somerville into the Atturra fold, as it is a trusted technology partner with over 30 years’ experience offering solutions that will complement the Atturra offerings."

All Somerville employees will retain their roles and responsibilities, joining the Atturra team.

This includes Somerville's owner and sales director Adrian Toole, managing director David La Bozzetta and chief executive and founder Craig Somerville.

“We envisage there will be strong growth in demand for Somerville’s managed services and cloud business."

"Atturra has strong skills and existing business in the Microsoft space and is one of the largest Azure partners in Australia, and this will improve our access to these resources," Somerville said.

The transaction is expected to complete by 31 March 2023, subject to the satisfaction of conditions precedent in the SSPD.

Atturra has been on an acquisition spree as of late.

Last week, Atturra announced that it completed its acquisition of Hammond Street Developments for $6.5 million.

In February, Atturra posted revenue of $82.8 million, up 34 per cent from the previous six month period, crediting continued growth and acquisitions of businesses.

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.

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.

In February 2023, Somerville announced it would offer offsite and offline immutable backups for cyber insurance and regulatory compliance, following a partnering deal with data protection company Veeam.

The previous February in 2022, Somerville launched a new trans-Tasman network based on Cisco technology following a $1.2 million investment.

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