Brennan IT boss talks new digital division, future acquisitions and potential for ASX-listing

Brennan IT is using its MOQ and Clade Solutions acquisitions to launch a new 350-person digital division in an effort to capitalise on demand for digital transformations. 

Brennan IT managing director Dave Stevens, who has been acting CEO since Stephen Sims' departure in 2020, told CRN that he will be the acting head of the new division. The company plans to appoint a new head of the division soon. 

“I would hope to have that filled by February or March next year...we've got a few new roles that will be announced over the coming months,” Stevens said.

Stevens said Brennan’s August MOQ acquisition  and January Clade Solutions acquisition had bolstered its ability to provide a data, AI, cyber security and consulting offering. 

“Clade’s where the bulk of our dynamics capability came from. And a very strong customer dev capability with data and AI. And Brennan already had a strong modern workplace capability — Teams OneDrive, SharePoint – all of those sorts of offerings,” Stevens said. 

“And then MOQ bought a very strong consulting division – very strong in data and analytics and custom devs capability that combined with ours…And MOQ brought a very noteworthy Azure MSP capability which significantly uplifted our capability as well,” he added.

The new division will meet demand for enhanced data analytics, security, mobile workforces and risk and compliance brought on by the “post-covid economy” and skills shortage, according to a Brennan IT statement. 

“Brennan Digital recognises that many companies are now having to change the way they do business through digital transformation in order to meet the needs of their customers and staff in the digital economy, better protect customer data and drive greater productivity,” the company stated.  

“Many Australian companies now have a greater reliance on outsourced IT to deliver their digital strategies because of the IT skills shortage.”

Stevens said a focus for several months had been integrating with MOQ to support the customers Brennan inherited from the ASX-listed MSP.

“We made sure big retailers, big fast food chains and large transport companies have had the same business outcomes,” he said.

“From day one of the acquisition, we've really been focused on bringing those two teams together. And, you know, we’re now able to offer a much smoother transition.” 

“So if there's a SQL issue or a virtual database administration issue for example those tickets now flow far more seamlessly into the Brennan managed services world, and customers have seen that from the consulting side of things as well.” 

ASX-listing and future acquisitions?

At the start of this month, Brennan stated it would pursue a “focused acquisition strategy” and exploring capital raising options, including the potential to list on the ASX in the next 12-18 months.

On the potential to list on the ASX, Stevens said “It's an option for us. It's certainly not something that we're committed to doing or that we've put a timeframe on. I think that the benefits for a company like ourselves publicly listing are quite big,” Stevens said. 

“That ability to raise capital or make much larger acquisitions…is quite attractive.

“I think it's a great way to be able to monetise share option plans, including for your staff. And I think customers take a certain comfort from the fact that you're listed…Your disclosure obligations are real. And there's certain natural benefits that way”

Stevens told CRN that after more appointments had been made he would start to focus on making more acquisitions. 

“I'm kind of running two roles at the momen.t I'm running our head of Brennan digital role as well as our CEO role, so in order for me to move on and you know, acquire again next year, I really do need to find my new head of Brennan digital just to free me up to do that work properly.”