The Australian IT channel has been a hotbed of mergers and acquisitions over the past few years, but one cohort of firms have stood out to CRN the most over the past 12 months.
They are the nine IT channel companies involved in M&A which also achieved places on the CRN Fast50 list in the past few years.
The CRN Fast50 ranks channel companies according to their growth over 12 months, so the companies are among the fastest growing IT channel businesses in Australia.
The acquisitions of nine former Fast50 finalists in the 12 months to September 2022 compared to two buyouts during the same period in 2020 to 2021, four in 2019 to 2020 and six in 2018 to 2019.
The nine Fast50 companies acquired in the last 12 months were:
- Wise-Sync – acquired by ConnectWise in September 2022
- Transpire – acquired by CI&T in August 2022
- Enable Professional Services – acquired by Fujitsu Australia in July 2022
- Layer 8 Networks – acquired by AdventOne in June 2022
- RIOT Solutions – acquired by Orro Group in May 2022
- Kettering Professional Services – acquired by Atturra in January 2022
- Over The Wire – acquired by Aussie Broadband in March 2022
- Ittelligent – acquired by Virtual IT Group in November 2021
- Eighty20 Solutions – secured majority investment from NCS Group in October 2021
The three Fast50 companies acquired between September 2020 to September 2021 were Insync Technology (bought by Rapid Circle), Olikka (bought by Accenture) and Cloudten (bought by CyberCX, from Vortiv)
Those acquired between September 2019 to September 2020 were Basis Networks (bought by CyberCX), Bistech (by Deloitte), BEarena and Forward IT (both by ASI Solutions).
During the same period between 2018 and 2019, the companies acquired were LBNCo, Fone Dynamics (both by Uniti Group), BCT Solutions (by Accenture), CMD Solutions (by Mantel Group), Cloudten (Transaction Solutions International, later Vortiv, then sold to CyberCX in 2020) and Mexia (by Deloitte).
Specialisation, customers, growth rates
The nine companies acquired in the past 12 months did not share a specific trait, apart from rapid growth, with each specialising in different areas and serving a range of customers.
Their customer bases are varied, with four mainly servicing enterprise and government, and three worked with mid-market and SMB customers. Kettering works across the spectrum but specialises specifically in the manufacturing sector, while Wise-Sync’s customers are other IT channel companies.
The companies’ revenue growth rates were also variable, with some finishing in the Fast50’s top ten, some posting comparatively modest growth, while others were closer to the 40-50 range.
- Wise-Sync: 75 percent in 2019 ($2.7 million)
- Transpire: 37.93 percent in 2020 ($9 million) and 72.62 percent in 2018 ($7.5 million)
- Enable Professional Services: 79 percent in 2019 ($25 million) and 134.41 percent in 2017 ($8 million)
- Eighty20 Solutions: 47 percent in 2021 ($24.9 million) and 193.23 percent in 2020 ($16.9 million)
- Layer 8 Networks: 91 percent in 2021 ($6.3 million) and 161.63 percent in 2020 ($3.3 million)
- RIOT Solutions: 116.97 percent in 2020 ($20.7 million), 120 percent in 2018 ($14.7 million) and 343 percent in 2017 ($6.7 million)
- Kettering Professional Services: 47 percent in 2019 ($3.5 million) and 95.95 percent in 2018 ($2.4 million)
- Over The Wire: 29 percent in 2021 ($112.7 million), 49 percent in 2019 ($79.6 million) and 56.53 percent in 2018 ($53.6 million)
- ITtelligent: 23 percent in 2019 ($3.7 million) and 45.6 percent in 2018 ($2.9 million)
Looking back at the buyouts
The most recent acquisition, and one of the highest profile this year, is Melbourne-based Wise-Sync, who was snapped up by global IT management and MSP automation software vendor ConnectWise earlier this month.
Wise-Sync specialises in payment processing and invoicing automation solutions and has also been a long-time ConnectWise partner.
“Wise-Sync provides payment and accounting software integration for MSPs and has a track record for receiving excellent partner feedback,” ConnectWise EVP of growth Chris Timms said at the time.
“The long-time relationship with Wise-Sync as a trusted integration to ConnectWise APIs makes them a natural choice for onboarding more formally into the ConnectWise family.”
Also getting snapped up by a multinational firm was Transpire Technology, this time by US-headquartered and Brazil-born digital services specialist CI&T for $23.4 million in August 2022.
Transpire specialises in user experience design, mobile and web development and cloud services on AWS.
"With Transpire, our clients will benefit from a comprehensive suite of end-to-end digital capabilities in addition to enhanced regional expertise,” CI&T APAC vice president Felipe Rubim said in August.
In July, the Australian business of global systems integrator Fujitsu acquired ServiceNow partner Enable Professional Services.
“Enable Professional Services' capabilities in co-creating value in tandem with Fujitsu's service integration expertise and advanced technologies will play an important role in accelerating our strategy for Business Applications,” Fujitsu EVP and vice head of Global Solution Business Group Yoshinami Takahashi said at the time.
Rounding out the firms acquired by multinational firms is Sydney-based Eighty20 Solutions, who secured a majority investment from Singapore-headquartered IT services firm and Optus sibling company NCS Group.
Eighty20 is a Microsoft Gold Partner and a specialist of modern workplace, cloud and security services. Its customers include Woolworths, Suncorp, TPG, New South Wales Department of Education and Boral.
“The addition of Eighty20’s unique capabilities in digital, cloud and workplace transformation across Microsoft cloud platforms will complement our existing technology practices, allowing us to meet the needs of our clients with a ‘best-of-cloud’ service portfolio,” NCS Group Australia boss Andre Conti said at the time.
Melbourne-based Advent One, which appeared in the CRN Fast50 seven times from 2009 to 2014 and 2020, acquired Melbourne-based Layer 8 Networks in June this year.
Layer 8 was founded by Ben Brockliss and Matthew Pook in 2017, specialising in unified communications, networking, and network security services. AdventOne chief executive Jon Ossip said at the time the acquisition of Layer 8 enhanced the company’s ability to fulfil all technology needs of their customers.
“The esteem in which the Layer 8 Networks team are held, and how highly regarded they are by the quality of their delivery and networking expertise, is very respected by us here at Advent One,” Ossip said.
Brisbane-based cybersecurity specialist RIOT Solutions, which debuted #1 in the 2017 edition of the Fast50, was acquired by networking and infrastructure provider Orro Group in May this year.
RIOT specialises in managed security services, threat detection and response, asset viability and design solutions. The company also offers an estimating and quotation service called ValidPro.
“We welcome RIOT into the Orro family. Not only is RIOT a nationally recognised security and network design provider, but it is also an organisation we have worked closely with for a number of years,” Orro Group chief executive Rodd Cunico said at the time.
When it was formed in 2021, Orro Group brought together four managed services providers CustomTec, Correct Solutions, Mach Technology Group and Comscentre. Comscentre has also been a regular fixture in the Fast50, finishing 9th in 2020, and also appearing in 2017, 2014, 2012, 2011, 2010 and 2009.
ASX-listed managed services provider Atturra acquired Brisbane-based Kettering Professional Services in January for $3 million.
Kettering specialises in the implementation, management and ongoing support of ERP solutions in the manufacturing sector, specifically with vendor QAD Inc. The company is also QAD’s sole Aussie channel partner.
Atturra chief executive Stephen Kowal said at the time, “Kettering is not only a cultural match with Atturra but aligns perfectly with our strategy of being a leader in selected technologies and industries.”
Telco and NBN reseller Aussie Broadband officially announced its plan to acquire telecommunications services company Over The Wire in late 2021 for $390 million. The deal was finalised in March 2022.
Over The Wire specialises in data networks, VOIP, hosting and IT security and support services.
“We believe Over the Wire is a great match to complement our current range of services. It’s a high quality business in a large and growing segment of the Australian telecommunications market,” Aussie Broadband managing director Phillip Britt said at the time.
Melbourne-based ITtelligent Consulting Services was acquired by Wollongong, NSW-based Virtual IT Group in November 2021.
ITtelligent specialises in IT support, cybersecurity, cloud and managed IT services.
Virtual IT Group’s Nic Ferraro told CRN at the time that ITtelligent aligned with the company’s products, services and customers, as well as values.
“We look for businesses who follow a similar path around enabling customers and working closely with customers, having a really strong relationship, and a strong internal work culture,” he said. “ITtelligent is probably one of the best organisations that we have seen that has such a fantastic relationship with their customers.”
Nominate your business for this year's CRN Fast50 before the October 7 deadline.
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