Anatas Pty Ltd, a subsidiary of listed technology services business Atturra Limited, has exchanged a Share Sale Agreement (SSA) to acquire Chrome Consulting Pty Ltd. Melbourne-based Chrome is an award-winning SAP/OpenText partner.
The upfront consideration is AUD4 million in cash and AUD1 million in shares, with earn-out/post-completion consideration of up to AUD2.5 million in cash, subject to Chrome achieving performance hurdles based on audited EBITDA targets for FY25 and FY26.
Chrome is redefining end-to-end ECM services within the SAP ecosystem, delivering services from strategic advisory through to implementation and ongoing support.
The acquisition will cement Atturra’s position as a leader for OpenText ECM in Australia, supporting customers with the largest certified team of consultants, and will expand Atturra’s data services portfolio to SAP and Microsoft enterprise landscapes and expand Atturra’s client base in OpenText.
The purchase price, including upfront and deferred consideration, is based on a multiple of 7.5x forecast EBITDA. Integration costs have been budgeted at AUD300,000.
“This is yet another exciting acquisition for Atturra that makes us a true market leader in ECM in Australia, an important and growing segment of the IT services market,” said Atturra CEO Stephen Kowal. “The synergies between our service offerings and the cultural alignment of both companies are very strong. Chrome’s core offerings and its industry solutions strengthen Atturra’s portfolio, and we see significant upside in the potential to expand into enterprise solutions.”
“This is an exciting move for Chrome accelerating the next stage of growth as Atturra brings a similar partner-friendly attitude and culture while adding significant complementary capabilities in service delivery managed support and a different customer base,” said Chrome CEO Mark Frear. “Combined, the acquisition will allow us all to tackle the significant opportunities ahead and deliver even more customer success. With Atturra we can address the SAP ecosystem’s needs more effectively as the deadline for SAP ECC approaches.”
The transaction is expected to be completed on or around December 24, 2024 subject to the satisfaction of conditions precedent in the SSA, including obtaining change-of-control consents required under Chrome’s material contracts. The SSA otherwise contains additional provisions (including conditions precedent, representations, warranties and indemnities) considered usual for agreements of this nature.
