M&A Blog May 2023: strong M&A activity in all services sectors

M&A Blog May 2023: strong M&A activity in all services sectors: Consulting, IT, Engineering, Marketing, design, AI, software etc...

1.??????Argon & Co has expanded its capabilities in New Zealand with the addition of the Studio Logistic team

The joining of forces between the two firms comes on the back of a two-year collaboration, said Chris Foord, an associate partner at?Argon & Co, a global management consultancy that specialises in operations and supply chain. Founded in 2019, Studio Logistic specialises in intralogistics, providing services such as warehousing and distribution centre design, warehouse process design, automation and technology selection. The boutique firm is led by founder Richard Mahoney (who now becomes an associate partner at Argon & Co) and further consists of a small team of logistic engineers with a background in industry.

2.??????Orro acquires partner Coloured Lines

Orro has acquired one of its former partners, voice and collaboration provider Coloured Lines for an undisclosed amount.?As part of the deal, Orro will gain access to the carriage provider’s subsidiaries, Qtec Systems and Noojee Contact Solutions, which will be both fully absorbed.?Orro claimed it will retain all current Coloured Lines employees including CEO James Turner, who will lead the newly merged company’s voice and collaboration business. Founded in 2011, Coloured Lines sells PBX's and IP telephony systems for businesses and service providers throughout Australia and New Zealand.?Its brand Qtec Systems has telephony, contact centre, meeting room, and IVA skills, and is a Microsoft Teams partner.??Meanwhile, Noojee Contact Solutions provides call centre software, supporting small to mid-sized businesses with inbound, outbound and hosted PBX phone solutions.?Orro said it has partnered with Coloured Lines on a number of projects across customers in financial services, retail, manufacturing and healthcare.

3.??????Acquisition of Craig & Rhodes PL strengthens Colliers Engineering & Design in Australia

Global diversified professional services and investment management company, Colliers, announced today that?Colliers Engineering & Design Australia?has acquired Craig & Rhodes Pty, a leading multi-discipline engineering, design and survey firm in New South Wales. The addition will strengthen CED’s overall scale and capabilities in fast growing Sydney, Australia’s largest market. Craig & Rhodes’ senior leadership team will become significant shareholders in the CED platform under Colliers’ unique partnership model. The business will rebrand as “Colliers Engineering & Design” and fully integrate into the rapidly expanding CED operations. Terms of the transaction were not disclosed. Founded in 1923, Craig & Rhodes’ 120 professionals operate from four offices across New South Wales. They provide civil and structural engineering design, surveying, planning, project management, water and wastewater design, and land development advisory predominantly to residential projects and mixed commercial developments.

4.??????Ideagen acquires Aussie ISV OnePlace Solutions in collab play

UK-headquartered governance, risk and compliance software vendor Ideagen has acquired Australian independent software vendor OnePlace Solutions to bolster its collaboration capabilities. Based in Manly, NSW, OnePlace is a Microsoft partner with a suite of software-as-a-service solutions revolving around Microsoft 365, with its products including OnePlaceMail, OnePlaceDocs and OnePlaceLive. OnePlace CEO James Fox will remain with the business as head of Ideagen OnePlace Solutions. This acquisition bolsters Ideagen’s presence in Australia, coming years after it acquired the Sydney-based regtech vendor CompliSpace in 2021 for up to $105 million at the time the deal was announced.

5.??????Melbourne marketing agency Bright Labs acquires Redline Digital Media

A Melbourne-based digital marketing agency creating content for the likes of Woolworths (ASX: WOW), FortyWinks and VicRoads has bolstered its operations after acquiring Redline Digital Media for an undisclosed sum. Bright Labs will absorb all Redline Digital senior staff members and contractors – a move that comes 11 months after the agencies initially partnered up to improve operational efficiency and consolidate their service offerings. Founded in 2004 by Rishad Sukhia, Bright Labs boasts a range of services, including brand design, UX (user experience)?design, digital marketing and film production. Since its inception, the company has helped deliver 300-plus projects and is industry-agnostic, serving clients that work in health, fast-moving consumer goods (FMCG), retail, construction, education and more. According to Bright Labs, it helped its clients achieve more than $110 million?in quantifiable online revenue in FY2021-22 via online lead generation, product sales and membership sign-ups.

6.??????Tech Data bags APAC distie deal with GitLab

Tech Data has scored a distribution deal with DevOps platform GitLab for the Asia Pacific (APAC) region.?The distributor will now bring GitLab to channel partners and independent software vendors in Australia, New Zealand, Singapore, Malaysia, Indonesia and Vietnam.?In addition, Tech Data will also have the distribution rights for GitLab in India and Japan.?According to GitLab, the partnership is aimed at addressing the DevSecOps and application modernisation market demand for partners and customers.?

7.??????Go1 acquires ed-tech offering bite-sized summary ‘Blinks'

Ed-tech Go1 has made its second acquisition of the year with mobile learning app Blinkist, enabling the Logan, Queensland-based company to make its platform accessible in more places. Though the acquisition price was undisclosed, Go1 says the acquisition expands the company’s appeal to an audience seeking?to learn new skills and stay up-to-date on business and self-improvement content on demand. Alongside the deal,?TechCrunch?reports that Blinkist backer Insight Partners took a $30 million equity stake in Go1 through an 'up round', but at the time of publication?Go1 was unable to confirm this.?Co-founded in 2012 by Holger Seim, Niklas Jansen, Sebastian Klein, and Tobias Balling, Blinkist boasts ‘tens of millions’ of global users who tap into its platform where books and podcasts are distilled down to their key ideas, which can be read or listened to in 15-minute explainers called ‘Blinks’. Learners can access Blinkist content through their corporate learning management system (LMS) but, for the first time ever, they will also be able to access content on their mobile, in CarPlay or wherever and whenever they choose to learn.?

8.??????Endava announces the acquisition of Mudbath Australia

Mudbath is an Australian-based technology firm specialising in strategy, design and engineering services. Mudbath partners with businesses to build new digital solutions, enhance user experiences and accelerate digital transformation programs across enterprise systems, web and mobile products using their proven agile delivery methodology. Mudbath’s clients span broad industry verticals, including retail, mining (and adjacent activities including rail and tools), health, insurance, banking and travel. Mudbath’s employees are based primarily in Newcastle, Sydney and Melbourne, Australia. The acquisition of Mudbath follows Endava’s organic entry into the Australia market in 2021 and acquisition of Lexicon in 2022, and further enhances Endava’s depth and breadth in Australia. Endava continues to see Australia as a growing and attractive market with strong demand for high-quality technology product creation delivered both onshore and nearshore by multidisciplinary delivery teams. Mudbath’s teams and strong client relationships are expected to complement Endava’s expanding nearshore capability in Malaysia and Vietnam to continue to deliver innovative, high-quality, digital solutions.

9.??????Liverpool Partners snaps up automation consultant Simplyai

It’s an Archer Capital reunion of sorts at Liverpool Partners, which has finalised terms to acquire Sydney-headquartered artificial intelligence consulting group Simplyai, Street Talk can reveal. The company, which has about 100 staff and revenues of about $30 million, will appoint ex-Accenture digital managing director and former Seven Group chief operating officer James Scott as chairman on completion of the sale. That’s due at the end of this month. The Liverpool Partners investment will allow Simplyai to continue to find organic growth as well as consider acquisitions of its own.?Simplyai assists its clients in implementing AI and automated solutions. For example, it could help automate lending checks for companies providing credit.

10.??Radfords, Global Leader in Fresh Produce Software, Secures Strategic Investment from Arcadea Group

Radfords, a globally recognized leader in fresh produce software serving the entire fresh produce value chain – including orchard owners, packhouses, and marketers – has secured a strategic investment from Arcadea Group, a global, long-hold and growth-oriented SaaS investor. The investment sees Phil Radford, Founder, transitioning to a Board role while continuing to influence key projects. Meanwhile, CEO Adam Cuming will maintain his leadership, guiding the company's vision and execution. Founded in 1989 by Phil Radford through a close collaboration with the Kiwifruit Industry in the Bay of Plenty, New Zealand, the Company has become an indispensable and uniquely capable software provider for diverse produce sectors including Kiwifruit, Avocadoes, Cherries, Citrus, Apples, and Vegetables. Arcadea's investment will further empower and secure Radfords' unwavering commitment to its customers and facilitate international expansion to meet the incredible demand for its trusted fresh produce software suite worldwide. Radfords’ customers can have confidence in a permanent and innovative home, unlike competitors that are PE-backed and perpetually flipped, or those by low-growth “strategic” acquirors that slowly liquidate businesses rather than grow them.

11.??VertomCory acquires Monson Agencies

Monson specialises in dry and wet-bulk commodities, servicing some of the world's largest industrial producers and traders and covering some of the fastest growing bulk export and import markets in the world. Monson orchestrates the global movement of >$200bn of dry-bulk annually via its network of 32 strategically located offices, spanning 10 countries and over 250 ports across Asia Pacific.?The acquisition of Monson complements VertomCory's stronghold in the ships and hub agency in ports space across UK, Continental Europe, USA and Singapore, with the acquisition connecting the Australia and expands across South East Asia.

12.??Alpha FMC buys boutique consultancy firm Shoreline

Alpha FMC has beefed up its presence in Australia with the acquisition of Shoreline, a Sydney-based boutique consultancy firm. Headquartered in the United Kingdom, Alpha FMC is an international consultancy to the asset management, wealth management and insurance industries. The industry specialist has over 900 consultants working from 15 offices worldwide. With the addition of Shoreline, acquired for an initial cash consideration of A$8 million (￡4.2 million), Alpha FMC adds around 20 consultants to its team in Sydney and a “highly complementary” client base. Founded in 2009, Shoreline works for asset and wealth management firms, sovereign funds, and superannuation and pension funds. The firm’s offerings focus on product and distribution, operations and outsourcing, data and analytics, and digital and technology consulting. As part of the deal, Shoreline’s longstanding management team will remain with the business post-acquisition, with a performance-driven earn-out mechanism of up to A$5 million (￡2.6 million) in cash (meaning the maximum potential of the deal could reach A$13 million if all targets are met).

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