Technology services company Atturra Limited says its subsidiary, Cirrus Networks Holdings Pty Ltd, has exchanged a share sale agreement to acquire New Zealand-based managed software provider company Plan B.
The upfront consideration is NZD20 million in cash, with earn-out/post-completion consideration of up to NZD4.5 million in cash subject to Plan B achieving performance hurdles based on audited EBITDA targets for FY25.
The purchase price, including upfront and deferred consideration, is based on a multiple of 6.2 time forecast EBITDA. Integration costs are expected to be approximately AUD580,000.
Plan B owns and operates a national network of five primary data centres across New Zealand. These data centres are interconnected through a high-speed network backbone. The core network is private and dedicated to Plan B customers, providing reliability and control along with real-time flexibility.
The company has a very high level of recurring revenue, with a diverse and loyal customer base across Australasia. Atturra will acquire more than 1000 clients across ANZ through the acquisition, which will continue to increase the service offering, geographical and customer coverage in Atturra’s managed services business.
“The acquisition of Plan B fits into Atturra’s ambition to be a leader in managed services, and this expands Atturra’s presence into New Zealand,” says Atturra CEO Stephen Kowal. “We see the acquisition of Plan B as a launchpad for further expansion both geographically and in capability, particularly with its network of five primary data centres across New Zealand. Plan B is recognised as a trusted partner in New Zealand and this acquisition perfectly aligns with our strategy.”
“The team at Plan B are delighted to be joining Atturra in what is a significant milestone for our companies,” said Plan B CEO Frazer Scott. “Plan B and Atturra have a shared focus on people and customer success, making the partnership a natural fit. The team at Plan B remains committed to the business and delivering exceptional outcomes for customers, who will also benefit from the extensive capabilities and resources that Atturra brings.”
The transaction is expected to close on or around December 2, 2024. The share sale agreement contains additional provisions (including conditions precedent, representations, warranties and indemnities) considered usual for agreements of this nature.
