Atturra has announced plans to acquire fellow ASX-listed IT services company MOQ Limited for $15.5 million.
The companies said the merger would 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.
“Atturra is very excited to have an Australian IT Services icon join the team. The combination of MOQ and Atturra accelerates Atturra’s growth and is a positive step towards the fulfilment of our Vision in becoming Australia’s leading IT Solutions and Advisory organisation,” Atturra chief executive Stephen Kowal said.
“This acquisition is directly aligned to our prospectus objective to expand our managed services through potential acquisition. Post-acquisition, Atturra plans to invest heavily in the MOQ business to accelerate its growth, and to ensure that appropriate systems and practices are in place to support the growth.
“We see this more as a strategic partnership allowing Atturra to grow its national presence across target industries. It also provides both teams with further access to growth as there is very little client overlap. I am looking forward to working with the MOQ staff and believe we can provide them with a great future.”
The $15.5 million acquisition price represents an offer value of $0.05 per MOQ share. The deal is also subject to shareholder and court approval, as well as from ASIC and other regulators.
MOQ Limited’s board also unanimously recommended that its shareholders vote in favour of the acquisition in the absence of a superior proposal.
MOQ non-executive chairman David Shein said, “The Board of MOQ views the Atturra offer as a compelling opportunity for MOQ shareholders to realise immediate value for their shareholding.
“We are confident that this merger will have a positive impact for both our existing and future customers by leveraging the combined group’s significant experience, product knowledge, IT expertise and resources.
“The Atturra transaction will provide significant career opportunities for our staff and we look forward to the journey ahead.”
Atturra, formerly known as FTS Group, specialises in enterprise advisory, consulting, IT services and solutions, whose customers include local government, utilities, education, defence, federal government, financial services and manufacturing. Its vendor partners include Microsoft, Boomi, Software AG, OpenText, Smartsheet, QAD, Infor and Solace.
MOQ is Atturra's biggest acquisition in 2022, following its earlier buyouts of Brisbane-based managed services provider and ERP specialist Kettering Professional Services in January and Perth-based Hayes Information Systems and Communications in May.
MOQ specialises in consulting, integration, managed services and solutions around data, applications and infrastructure.
Earlier this year, MOQ 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.