Brennan IT has said it will make further acquisitions as the federal court approved its purchase of ASX-listed IT services provider MOQ Limited today.
Brennan founder and managing director Dave Stevens stated that the company was considering raising capital to fund organic and inorganic growth by going public in the next 12-18 months.
“The MOQ acquisition and the recent Clade Solutions acquisition means we can provide even better services to our clients, with local experts who are highly skilled in data analytics, business transformation and consulting.”
Brennan beat rival managed services provider Atturra in a bidding war for MOQ in August when Brennan offered $23.3 million for the ASX-listed company. Brennan acquired IT consultancy Clade solutions in January for an undisclosed sum.
MOQ ended the 2021-22 financial year with $82.3 million revenue and $4.8 million net loss after tax.
Stevens said that the expanded customer base and service offerings secured by the acquisitions put the company on track to hit $275 million revenue in the next 12 months.
“Our expanded capabilities enable us to deliver both the day-to-day operational IT services and transformational IT solutions that are simple and easy to use.”
“This is all underpinned by the strong customer-centric service that Brennan has become recognised for, and which is reflected in our industry-leading NPS scores, plus our proven back-end structures,” Stevens said.
Stevens added that the company would service 1,400 customers across government, enterprise, and business sectors in the next 12 months, including a large project underway with the Queensland government.
“We are working with the Queensland Government to enable the Rural Water Futures (RWF) program; helping the RWF team to design and develop an improved Rural Water Management system that will help to give Queenslanders confidence that their water resources are being managed fairly and responsibly.”
The growth target was also based on the rising demand for IT services in Australia, Stevens said.
“Spending on IT services in Australia is expected reach around $39 billion by the end of this year, up around six percent on the year prior, as a result of businesses shifting their focus from short-term projects to adapt to the changes forced upon them by COVID, to longer-term strategic projects.”
“The biggest driver of that growth is in business and technology consulting, which will grow to nearly $8.5 billion across Australia by the end of the year.”
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