Channel shakeup: four Australian firms on a spending spree

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Channel shakeup: four Australian firms on a spending spree
UXC managing director Cris Nicolli

In the CRN newsroom, we have identified four channel players rivalling one another in sheer appetite for acquisitions: RXP Services, Empired, UXC Ltd and BigAir.

Let's track this foursome’s acquisition trails, remembering that some of the numbers may vary slightly in reality due to things like performance-based targets or deferred considerations.

Coming in at fourth place is Perth-based Empired. The enterprise and government service provider made two buyouts in the 2013-14 year. It snapped up eSavvy and OBS for a total consideration of $20.22 million. Empired has shown no signs of slowing down with another takeover just a few months into the 2015 financial year - it pounced on Australia and New Zealand Microsoft partner Intergen in October for $17.4 million.

In third place is wireless provider BigAir. The company has swallowed up the customer bases of a string of companies since listing on the ASX in 2006. It kicked off the 2014 financial year with a strong balance sheet and its most significant acquisition yet – the customer base of unified communications outfit Intelligent IP Communications. This was followed by the purchase of Anittel Communications and Unistar Enterprises, bringing the total potential spend to $27.7 million including performance related considerations. The biggest move was yet to come, with the impending buyout of Sydney IT provider Oriel announced in November for up to $15 million.

In second place among the serial acquirers comes RXP Services. The company was only created in 2011, born out of a rollup strategy. The M&A focus has not let up. In 2013-14, RXP acquired six companies for a total potential consideration of $36.46 million including deferred and contingent payments. RXP has kept its wallet open this financial year, recently snapping up Centrum for $4.15 million.

But none of these buyout businesses couldn't match the spending spree of UXC Ltd. In 2013-14, the company gobbled up five companies spanning Australia, Asia and the United States for a whopping total consideration of $50.16 million. Then, in October 2014, it made another purchase, bringing security outfit Saltbush Group into the family, for an undisclosed amount.

Note: Figures shown are approximate only. In some cases, considerations shown below may not include earn-out payments or other considerations.

Empired

Date

Company

Approximate total consideration (including deferred and contingent payments)

October 2014

Transformational acquisition of Intergen Limited

$17.4 million

May 2014

eSavvy Pty Ltd

$2.24 million

September 2013

OBS Pty Ltd

$17.98 million

Total announced in FY2014

 

$20.22 million

 

BigAir

Date

Company

Approximate total consideration (including earn-out payments)

December 2014 (expected)

To acquire Oriel Technologies

$15 million

April 2014

Unistar Enterprises

$1.2 million

January 2014

Anittel Communications

$6.5 million

September 2013

Intelligent IP Communications customer base

$20 million

Total announced in FY2014

 

$27.7 million

 

 

RXP

Date

Company

Approximate total consideration (including deferred and contingent payments)

October 2014

Centrum

$4.15 million

May 2014

Aptus International

$4.1 million

March 2014

Insight 4

$8.67 million

October 2013

Integrated Value

$9.75 million

October 2013

Nobel Consulting

$3,24 million

September 2013

MethodGroup

$6.55 million

July 2013

Transpire Pty Ltd

$4.15 million

Total announced in FY2014

 

$36.46 million

 

UXC

Date

Company

Approximate total consideration (including deferred and contingent payments)

October 2014

Information & Cyber Security Saltbush Group

Not disclosed

June 2014

Clarity Consulting Group Australia

$0.54 million

June 2014

Convergence Team (Australia and Singapore)

$2.96 million

December 2013

Tectura

$18.8 million

November 2013

Keystone Management Solutions

$25.56 million

October 2013

White Labelled

$2.3 million

Total announced in FY2014

 

$50.16 million

 

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