Brennan IT is looking to create one of Australia’s largest homegrown technology companies with its offer to acquire fellow managed services provider MOQ Limited.
MOQ yesterday announced Brennan IT was the third-party bidder that put in an offer to acquire the company, initially for $18.6 million last week, which beat the $15.5 million offer from Atturra a few days earlier. Atturra matched Brennan’s offer, with Brennan bumping up the offer to $20.5 million yesterday.
In an announcement released today, Brennan said its acquisition bid aims to bolster its growing digital transformation capabilities and its existing managed services offerings, with MOQ providing both complementary services and geographic expansion once the acquisition is completed.
MOQ would also be Brennan IT’s third acquisition in the last 12 months, following Forsythes Technology in August 2021 and Clade Solutions in January this year.
“We are excited to be taking this step forward in our vision to become Australia’s largest technology company,” Brennan IT founder and managing director Dave Stevens said.
“With over 25 years in business, our heritage as one of Australia’s largest and most successful managed services providers has recently been bolstered by two acquisitions. Our strategy of fully integrating acquisitions means our customers and our staff quickly get the full benefits of the merged entities.”
Stevens is also an existing shareholder of MOQ, currently owning 8.6 percent of the total MOQ shares on issue.
Brennan IT also revealed it has sought Dentons as its legal adviser on the deal, while MOQ is working with Monash Advisory as financial adviser and Thomson Geer as legal adviser.
MOQ specialises in consulting, integration, managed services and solutions around data, applications and infrastructure. Earlier this year, the company revealed it posted $3.6 million net loss after tax, blaming “poor” project governance and controls, while promoting a refresh in its personnel and processing work.
Atturra first announced plans to acquire MOQ on 30 June, also aiming to create one of Australia’s largest nationwide IT services businesses, leveraging each other’s expertise in Microsoft, while also expanding Atturra’s managed services offerings and customer base.
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