Efex drops $30m to acquire MSP onPlatinum

This acquisition is a part of the company’s “buy and build” strategy following its recent cash injection from Advent Partners.

Managed services company efex is continuing its buying blitz acquiring IT solutions provider (ITSP) onPlatinum for $30 million.

OnPlatinum is the IT managed services division of ASX-listed Comms Group Limited.

According to efex, this is the company’s most significant buy to date. The company has been snapping up several Aussie partners including Compusult, Priority1 IT, and Datcom.

In October last year, Advent Partners invested a significant, yet undisclosed amount of cash behind the business to fuel its “buy and build” strategy.

This acquisition gives efex a head count of 370 across the entire suite of companies.

Nick Sheehan, CEO at efex told CRN Australia that onPlatinum gives them greater scale and depth in managed IT, particularly for corporate mid-market and larger multi-site organisations.

“It strengthens our presence in Queensland and across the east coast, adds a highly capable technical team, and broadens what we can deliver for customers across managed IT, cloud, cybersecurity, modern workplace, unified communications and business resilience,” he said.

“Most importantly, it helps us deliver the combination customers are increasingly asking for: enterprise-grade capability, specialist depth and local accountability.”

In terms of staff staying or going, Sheehan said the onPlatinum team is “central” to the value of the acquisition.

“We intend to retain the very experienced and capable onPlatinum team and maintain the customer relationships and local service model that have made the business highly successful,” he said.

“Our immediate priority is continuity for customers, suppliers and employees, we will be working with Comms Group under a twelve-month transition services arrangement to support the smooth transition.”

Sheehan didn’t specifically comment on future acquisitions, but said they have a “disciplined” buy and build strategy, and they are “selective” about the businesses they bring into the group.

“The focus is on high-performing managed technology providers that add capability, customer relationships, specialist expertise or geographic strength, and that fit our strategy of building a national platform with local accountability,” he said.

“Acquisition is one part of our growth strategy, but the priority is always quality, cultural fit and customer value, not simply doing deals for scale.”

This deal is subject to customary completion adjustments and conditions precedent.