Atturra to acquire Blue Connections for up to AUD $25.5 million
Atturra has entered into an agreement for its subsidiary, Cirrus Network Holdings, to acquire Blue Connections, a managed services provider and systems integrator.
The transaction will see Atturra pay an upfront consideration of AUD $18 million in cash. There is an additional earn-out and post-completion amount of up to AUD $7.5 million, which could be paid in cash or shares depending on Blue Connections' achievement of audited EBIT targets for the financial years 2026 and 2027 and the retention of key staff. Integration costs for the acquisition have been budgeted at AUD $500,000.
The acquisition is expected to be completed on or around 31 August 2025, subject to the satisfaction of conditions precedent including the granting of change-of-control consents under Blue Connections' key material contracts. The share purchase agreement includes further terms typical for similar transactions.
Blue Connections has been delivering IT solutions and managed services since 1997, with its operations based out of Melbourne. Its facilities include an experience centre, training centre, configuration zone and warehouse. The company's Australian-based team provides services ranging from infrastructure provision, virtualisation, and disaster recovery solutions to a broad managed services offering.
Blue Connections operates a Network Operations Centre, supporting clients with networking, security, and unified communications. The company is a Microsoft Partner and Cloud Solution Provider, with a service desk in Australia that offers round-the-clock support with Level 1, 2, and 3 engineers. Its client base includes mid-market, enterprise, and government sectors, with services covering device management, procurement, modern workplace solutions, and bid management.
If the acquisition is completed as planned, Blue Connections is forecast to contribute more than AUD $2.5 million in EBITDA in FY26 and more than AUD $3.5 million in FY27.
Atturra's rationale
Stephen Kowal, Chief Executive Officer of Atturra, highlighted that the proposed acquisition is a strategic move designed to enhance the company's managed services capability and national presence.
"The proposed acquisition of Blue Connections will significantly enhance Atturra's credentials as a leading provider in managed services. It will strengthen Atturra's service capabilities, while expanding its client base and portfolio of offerings. Notably, Blue Connections' client roster has minimal overlap with Atturra's, providing an opportunity to broaden Atturra's revenue streams and market reach.
"The proposed acquisition aligns with Atturra's strategic focus on its commitment to scaling its managed services capabilities. It will also establish a key operational hub for the business in Victoria, supporting continued national expansion."
Blue Connections' established presence and leadership in delivering IT solutions are expected to complement Atturra's portfolio. The minimal overlap in clientele between the two companies is intended to allow Atturra to diversify its revenue base and support growth in new geographies.
Atturra delivers IT solutions for the design, implementation, and maintenance of infrastructure. With the planned addition of Blue Connections' expertise and Australian-based service desk operations, Atturra will be able to offer extended managed services, support for end-user compute, device lifecycle management, and related solutions to an expanded customer base.
The integration of Blue Connections into the Atturra group is budgeted at AUD $500,000, with the aim of a smooth transition for both employees and clients.
The share purchase agreement includes standard provisions for these kinds of transactions, ensuring regulatory compliance and safeguarding the interests of both parties ahead of completion.
