Atturra Limited Expands Market Position with Acquisition of ComActivity for ERP Solutions in Manufacturing

About Attura Limited

Atturra Limited (ASX: ATA) is a leading Australian technology business offering a wide range of enterprise advisory, consulting, IT services, and solutions. Specialising in industries such as local government, utilities, education, defence, federal government, financial services, and manufacturing, Atturra partners with global technology providers like Boomi, Cisco, Microsoft, and Infor. With a focus on driving immediate impact and sustainable growth, Atturra helps clients navigate disruption and achieve successful business transformations. Their services span Strategy & Preparation, Design & Implementation, and Realisation & Improvement, empowering clients to confidently execute their milestones in a rapidly evolving environment.

Strategic Rationale Behind the Acquisition

Atturra Limited has announced a significant acquisition that will further bolster its position as a market leader in enterprise resource planning (ERP) solutions for the manufacturing sector. The acquisition of ComActivity, a Sydney-based company known for its innovative manufacturing solutions based on Infor’s M3 product suite, marks an important step in Atturra’s growth strategy and its ongoing commitment to delivering cutting-edge technology to businesses in Australia and New Zealand.

The acquisition of ComActivity is an important part of Atturra’s broader strategy, which is centred on technology leadership, industry specialisation, and geographical expansion. Atturra’s CEO, Stephen Kowal, commented that the company’s strategy has always focused on combining industry knowledge with the best available technology to drive business transformation for clients. This acquisition allows Atturra to expand its capabilities in Infor M3, which is widely regarded as one of the most comprehensive and powerful ERP systems available. By adding ComActivity’s expertise to its portfolio, Atturra can offer clients a more robust set of ERP solutions to help them navigate the challenges of digital transformation and stay competitive in the fast-evolving manufacturing sector.

ComActivity’s specialisation in Infor M3 positions the company as a key player in the Australian ERP landscape. Its reputation for delivering highly effective manufacturing solutions aligns perfectly with Atturra’s goal of providing comprehensive and scalable ERP services.

Financial Terms of the Acquisition

The financial terms of the acquisition are clear and provide a solid foundation for Atturra’s future growth. The upfront consideration for the purchase of ComActivity is $9 million in cash, with an additional earn-out/post-completion consideration of up to $5.5 million depending on ComActivity’s performance. This earn-out is based on audited EBITDA targets for the fiscal years 2025 and 2026, meaning that the final price paid for the acquisition will depend on ComActivity’s ability to meet specific financial performance goals. The purchase price, including both upfront and deferred consideration, is based on a multiple of 6.95x forecast EBITDA, which is a relatively favourable multiple for this type of acquisition in the technology sector.

Additionally, Atturra has budgeted $320,000 for integration costs. These costs will be used to ensure a smooth integration of ComActivity’s operations and to align the company’s technology and operational processes with Atturra’s broader organisational structure. This is a standard procedure in mergers and acquisitions, designed to ensure that the combined entity operates efficiently and effectively following the completion of the deal.

The funds for this acquisition are being drawn from Atturra’s recent capital raising, which raised significant funds to support the company’s growth initiatives. The recent capital raising, which was completed in November 2024, will not only fund the acquisition of ComActivity but also enable Atturra to continue pursuing other growth opportunities in the technology services space.

Expanding Client Base and Cross-Selling Opportunities

One of the most significant advantages of the acquisition is the expansion of Atturra’s client base. With ComActivity now part of the Atturra group, the company will inherit 61 new manufacturing clients, providing an immediate boost to its revenue streams. These new clients span a range of industries, including manufacturing, food and beverage, and asset-intensive sectors.

The acquisition also opens cross-selling opportunities for other Atturra services and products. As the company integrates ComActivity’s solutions into its broader offerings, it will be able to deliver more comprehensive technology solutions to its existing clients while attracting new business from those in the manufacturing sector. With Atturra’s wide range of technology services, including consulting, systems integration, and cloud solutions, the company is well-positioned to offer value-added services to ComActivity’s clients, enhancing customer satisfaction and deepening relationships.