High level of M&A activity in the B2B services sectors

1.?????? Pemba Capital Partners has partnered with Sequana, a water-focused advisory and engineering specialist

Sequana was looking for a capital partner to help accelerate the next chapter of its impressive journey and capitalise on the opportunity in Australia’s water sector. Sequana is one of Australia’s most accomplished client-side project and program management consultancies, at the forefront of reshaping Australia’s major water infrastructure projects. Founded in 2019, the firm boasts a growing team of over 70 experts with a hybrid business model that combines high-value commercial advice with technical water engineering expertise, enabling it to deliver on complex infrastructure projects for Australia’s leading water authorities and government departments. With an emphasis on environmental stewardship, Sequana covers all aspects of the water ecosystem, including urban water, rural water and manufactured water. Pemba will collaborate closely with Sequana on a variety of initiatives to drive sustainable growth and seize the significant market opportunity. In a competitive environment for top talent, Pemba and Sequana are aligned in the continued need to enhance the employee value proposition to create long-term rewarding opportunities for staff.

2.?????? Pemba partners with Stannards

Stannards were looking for a capital partner to help accelerate the next chapter of their growth journey and consolidate their position as one of Australia’s leading boutique accounting firms. Stannards is a progressive Melbourne-based professional services firm offering accounting, taxation,? audit and advisory services to mid-market and HNW clients across Australia. The firm has placed in the AFR’s top 50 accounting firms. Stannards has seen above market growth through the penetration of core and emerging service lines (e.g. CFO advisory, M&A, family office services etc.). They have sector expertise including hospitality and food, medical, Not for Profit Organisations, retail and transport & logistics. Stannards have a team of 9 Partners and 75 employees. Pemba will work closely with the Stannards team as they continue their exceptional organic growth. Given the highly fragmented market, the partnership will also work collaboratively to assess potential acquisition opportunities. In a competitive environment for top talent, Pemba and Stannards are aligned in the continued need to enhance the employee value proposition create long-term rewarding opportunities for staff.

3.?????? Reece Group buys Melbourne venture studio Shadowboxer and its Southpaw web agency

The innovation division of Reece Group (ASX: REH) has acquired Melbourne-based venture studio Shadowboxer and its webdesign agency Southpaw, giving the listed plumbing products giant capacity to accelerate the digital innovation that is shaping the future of the trade and construction industry.?As part of the deal, Shadowboxer and Southpaw’s senior teams will join Reece Group’s Breakthrough Innovation Group (BIG) through which the acquisition was made. The businesses will work alongside BIG’s venture capital arm Superseed Ventures, creative agency Trout and innovation consultancy Next as part of a broader mission to lead the trades sector into the digital world. Shadowboxer was founded by Spilva, Graham, McGrath, Fraser and Tom Ashmor in 2020 and since then it has built more than 55 digital products, helping its partners with successful raises and exits totalling about $100 million. This includes the exit of hospitality tech product Doshii to Commonwealth Bank of Australia (ASX: CBA) in 2021. Under BIG’s ownership, Shadowboxer will continue to build and launch products with early-stage startups across all industries, including trades and construction.

4.?????? Access4 acquires Channel UC for cloud comms scale

Voice and unified communication-as-a-service wholesale vendor Access4 has acquired Channel UC to scale its capabilities in cloud communications for an undisclosed sum. Channel UC’s whole team of 22 employees will make the transition over to the new ownership, which includes managing director Brad Milne and director Matt Milne who will both be added to Access4’s senior leadership team. Additionally, after a transition period, only Access4’s brand will remain. As a result of the deal, the business’ combined transacting reseller base will expand to over 600 partners and over 300,000 services. All existing Channel UC partners, customers and deals will transition over to Access4 over a flexible 12-month period. The vendor said the acquisition is a “key milestone”, with Access4 adding Channel UC’s omni-channel contact centre solutions, artificial intelligence integration, professional services and session border control as a service to its portfolio. For partners, Access4 claimed the deal will result in improved product offering and automation, consolidated support resources and seamless business continuity.

5.?????? Efex steps up regional Victorian footprint with WorldMark

Efex has acquired WorldMark Corporate Consulting, a Geelong-based firm, further cementing its position as an IT regional service provider. Founded by Adam Galle in 1997, WorldMark is known for its cloud consulting, infrastructure services and understanding of medical businesses’ regulatory and compliance requirements. The acquisition marks efex’s sixth acquisition of a Victorian regional business over the past five years. It will expand its client base by over 10 per cent in the state, adding 200 new clients. Efex?chief executive officer Nick Sheehan said the?acquisition?is important to the company’s broader strategy of growing organically and through targeted acquisitions. The?acquisition?will also bring an experienced team with deep knowledge across multiple sectors, particularly in medical services and specialist medical consulting. Under the agreement, WorldMark will continue to operate under its own brand. Its current leadership team, led by Adam Galle and Paul Chapman, will remain in place to ensure a smooth transition and business continuity.

6.?????? Ghella acquires majority stake in The RIX Group of Companies, diversifying offerings in Australia

Ghella has acquired a majority stake in?The RIX Group of Companies, comprising The RIX Group, RIX Asset Maintenance and RIX Ground Engineering, marking a significant step in the consolidation of our presence across Australia. This acquisition diversifies Ghella’s service offerings in the infrastructure sector.?Over the last 25 years, The RIX Group of Companies has built a strong reputation for its expertise in ground engineering, including ground anchoring, slope stabilisation, shotcrete, piling, rope access and ground improvement. Their commitment to quality and excellence aligns closely with Ghella’s values.?While Ghella and The RIX Group of Companies will maintain their independent operations, the companies will collaborate closely, leveraging each other's strengths to deliver enhanced solutions and meet the needs of large-scale projects across Australia.?

7.?????? Melbourne’s Screwloose IT gains foothold in Queensland with White Rook Cyber acquisition

Melbourne-based Screwloose IT has acquired Brisbane cyber security company White Rook Cyber in a strategic merger of operations that aims capitalise on rapid growth in the sector nationally. The move gives Screwloose a base in Queensland - a market it has been eyeing for some time, while White Rook Cyber gains a foothold in the broader national market after building a significant local operation servicing government, SMEs and not-for-profit organisations. White Rook Cyber was established by experienced cyber security duo Angela Champion and William Ulyate in 2020 when the business partners initially planned to create a niche consultancy servicing Queensland. For White Rook, Screwloose provides access to the company’s sophisticated cyber security platform that can offer clients access to a security operations centre.

8.?????? Novigi boosts services play with 360 Managed acquisition

IT services provider Novigi has bolstered its services capabilities with the acquisition of Brisbane-based 360 Managed. Novigi will integrate all of 360 Managed’s team of five employees into its operations, bringing its workforce to 264. It also gains several new clients, two of which include Australian Food Super and FutureSuper. In the short term, 360 Managed will continue to operate as a brand but will be retired in the future. Novigi’s acquisition of 360 Managed comes months after it was appointed as the technology partner for?Apex?Group’s superannuation business in July, handling the data and administration tech functions.

?9.?????? Terem acquired FMI, a facilities management software provider

FMI’s long term relationships with customers, passionate team and new product success that led them to acquire FMI. Terem is acquiring technology companies that they can build over decades. FMI has been helping organisations with their facilities for over a decade.? This enduring industry involvement has helped FMI’s new cloud product achieve impressive take up from new customers. The strategy for FMI will remain the same. FMI’s software is used by health care groups like Mater, universities like Swinburne University and other organisations like the NSW Government, to manage their facilities. FMI customers can use FMI software to manage their asset register, schedule maintenance, manage contractors and report on regulatory obligations.

10.?? Vysarn Ltd announces strategic acquisition and capital boost

Vysarn Limited, a water services company, has announced the strategic acquisition of CMP Consulting Group, aiming to leverage the upcoming water infrastructure boom in Australia’s most populous states. The $38.2 million capital raise, through the placement of new shares, will fund the $24 million cash purchase of CMP, with additional shares contingent on performance targets. This move is expected to significantly boost Vysarn’s earnings per share and contribute to long-term growth.

11.?? ThinkHQ has acquired Loud Communications

Think HQ has acquired LOUD Communications, the Sydney-based consumer behaviour and creative innovation specialists. This acquisition marks a huge moment for us, supercharging our growth in the Sydney market and our commercial offering. And the timing really couldn’t be better. Fresh from our recent B-Corp accreditation and a series of agenda-setting national campaigns, this acquisition really shows our creds as the only integrated agency that reaches all of today’s Australia. LOUD has an enviable reputation for understanding consumer behaviour and driving creative innovation. For more than 30 years, they’ve helped brands navigate a complex and evolving cultural landscape, with brand storytelling and multicultural engagement skills that perfectly complement our existing capabilities.??

12.?? Capgemini buys product design consultancy consultancy D+I

The deal sees Paris-headquartered Capgemini acquire one of the nation’s leading product design companies, with D+I’s 80-person team holding dozens of awards under their belt, including several Good Design Awards nationally. Since its inception in 1987, Sydney-headquartered D+I, which also has offices in Melbourne and Newcastle, has bagged more than 260 local and international awards for design and engineering excellence. D+I specialises in mechanical engineering and electronics product development, with a focus on high-precision products in science, wellness and science – typically products that face stringent compliance accreditation and certification requirements. Now part of Capgemini’s Australia & New Zealand business, D+I will operate under Capgemini Engineering, which launched in 2021 following the bringing together of several engineering and research & development practices under one roof (most notably Altran). The division today has more than 60,000 engineers and scientists across the globe.

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