Atturra to acquire ComActivity for AUD $9m plus earn-outs

Atturra has announced the planned acquisition of ComActivity, enhancing its ERP solutions capabilities within the manufacturing sector across Australia and New Zealand.

Atturra, through its subsidiary Galaxy42 Group, has entered into a Share Sale Agreement to acquire ComActivity, a firm known for its manufacturing solutions based on Infor's M3 product suite. This move supports Atturra's goal to strengthen its position in the ERP solutions market within the ANZ region, expanding capabilities from their existing Infor Pathway knowledge to a broader scope with Infor M3.

The acquisition includes an upfront cash consideration of AUD $9 million, with an additional earn-out possibility of up to AUD $5.5 million. This additional amount is contingent on ComActivity satisfying performance targets based on audited EBITDA figures for the financial years 2025 and 2026. The total purchase price employs a multiple of 6.95 times the forecast EBITDA, while integration costs have been allocated at AUD $320,000.

Stephen Kowal, Chief Executive Officer of Atturra, remarked on the strategic fit of acquiring ComActivity. He stated: "Atturra's strategy is built with a strong focus on both technology and industry specialisation, making the acquisition of ComActivity a perfect fit. Atturra sees manufacturing as a key industry within the company's portfolio. It is an important contributor to the Australian economy, and we have a great loyal client base in this industry. With ComActivity on board, our manufacturing industry-focused ERP technology capabilities expand significantly, allowing us to deliver cutting-edge solutions powered by Infor's M3 product suite. This is an exciting step in Atturra's strategy of picking leading technologies, and focusing on being a market leader, ensuring the company can offer best-in-class solutions to its clients."

Further expressing excitement about the acquisition, Jason Levick, Co-Founder of ComActivity, said: "We are thrilled to join forces with Atturra, a leading IT solutions provider whose vision and culture align very tightly with ours. Over the years, ComActivity has established itself as a leading solutions provider of Infor M3 solutions, driving success for our clients specifically in manufacturing, food and beverage, distribution, equipment and asset-intensive industries. This partnership will amplify our ability to deliver world-class solutions and create greater value for our clients. Together, with Atturra's expansive resources and expertise, we are poised to take our innovative approach to the next level while maintaining the strong culture that has been the foundation of our success."

The transaction is anticipated to conclude around 31 December 2024, subject to the fulfilment of conditions outlined within the agreement, including the acquisition of necessary change-of-control consents under existing ComActivity contracts. The agreement contains standard provisions such as conditions precedent, representations, warranties, and indemnities typical for transactions of this type, and has been authorised for release by Atturra's Board.

This strategic acquisition is positioned as 'Acquisition 2' in Atturra's recent market statements and is funded through proceeds from a capital raising activity completed in November 2024. ComActivity's integration into Atturra brings 61 new clients along with opportunities for cross-selling other Atturra services and products.