xAmplify acquires CTO Group to boost digital transformation drive

xAmplify has announced the acquisition of CTO Group to expand its business transformation services in Australia.

The move comes at a time when Australian organisations are under increasing pressure to update ageing systems, improve delivery speeds, and address growing expectations from both the public and within their own sectors.

Expansion and integration

According to xAmplify, this acquisition aims to bolster its offerings across cloud infrastructure, enterprise platforms, and intelligent automation. The integration of CTO Group's capabilities is expected to accelerate xAmplify's ongoing national transformation projects, providing organisations and government agencies with an enhanced capacity to scale securely and manage costs.

Wayne Gowland, Chief Executive Officer and Co-founder of xAmplify, said: "Whether it's government or essential services, organisations are feeling the pressure to update ageing systems, speed up delivery, and keep up with rising expectations. However, a lot of them are still doing this without the right kind of support."

xAmplify has seen steady growth in recent years through the delivery of digital programmes for government and large-scale organisations. The company indicated that this acquisition is part of a wider strategy that includes a recent growth investment from Macquarie Capital Principal Finance, as well as plans for new office locations in Melbourne and Brisbane later in the year.

The company also plans to relocate its Canberra headquarters to larger premises in Barton. This decision is intended to facilitate closer collaboration across its now-integrated team.

Market context

Australian organisations are currently responding to more complex regulatory requirements, financial constraints, and a shortage of digital talent. Digital transformation is viewed not just as a future goal, but as an immediate priority for both public and private sectors.

Mr Gowland elaborated on these industry demands: "Australia's reached a real turning point when it comes to digital transformation."

These comments align with recent remarks made by Senator the Hon Tim Ayres, Minister for Industry and Innovation and Minister for Science, who recently stated that Australia had "no alternative" but to adopt new technologies and take a proactive approach in their development and regulation. Senator Ayres also urged that Australia must "lean in hard" to the benefits of artificial intelligence or risk ending up "on the end of somebody else's supply chain".

Mr Gowland noted that client needs have shifted, highlighting that: "Organisations are looking for more than just one-off solutions. They want trusted partners who can help them connect the dots, from big-picture strategy right through to delivery, especially now, as they start to navigate the complex and fast-moving space of AI."

"It's about understanding how to use it safely, securely, and in ways that genuinely improve how they work. This expansion gives us even more capability to do just that," said Mr Gowland.

The partnership is designed to combine CTO Group's experience in delivering business and technology transformation and security with xAmplify's existing digital transformation services.

Kane Fillingham, Chief Executive Officer and Co-founder of CTO Group, said: "Our expertise in digital transformation, governance and assurance, service integration and security architecture complements xAmplify's strengths. We look forward to working together to support Australian public sector organisations with secure and scalable digital infrastructure that meets rigorous standards."

This focus on integrated solutions aims to help clients move their data to the cloud more efficiently and with increased security. The companies stated that their combined capabilities will support smoother migrations and enhanced digital outcomes for clients in both government and business sectors.

The company reiterated that the integration "means businesses and government agencies can scale securely and manage costs effectively, a crucial advantage in today's fast-evolving digital landscape."

Mr Gowland emphasised the importance of supporting practical improvements within organisations, stating: "At the end of the day, what really matters is ensuring technology investments help organisations do better work every day."

He added: "By combining our expertise and solutions, we want to offer more practical, tailored transformation strategies that fit the real needs of each organisation and help them feel more confident about embracing technology in ways that make a difference."