Atturra Expands Manufacturing Software Capabilities with ComActivity Acquisition

Highlights

• Strategic Acquisition: Atturra acquires ComActivity, strengthening its ERP solutions leadership in Australia and New Zealand's manufacturing sector.
• Enhanced Capabilities: The deal broadens Atturra’s expertise in Infor M3 solutions, complementing its existing Infor Pathway capabilities.
• Financial Details: The acquisition cost includes $9M upfront and up to $5.5M in earn-outs, with total costs tied to performance hurdles for FY25 and FY26.

Atturra Limited (ASX:ATA), a prominent technology services company specializing in IT solutions, has announced the completion of its acquisition of ComActivity through its subsidiary Galaxy42 Group Pty Ltd. The acquisition, executed via a share sale agreement, is set to bolster Atturra’s position as a leading provider of enterprise resource planning (ERP) solutions in the manufacturing sector across Australia and New Zealand.

ComActivity, based in Sydney, is renowned for its expertise in innovative manufacturing software solutions built on Infor’s M3 product suite. By integrating ComActivity's capabilities, Atturra aims to enhance its service offerings, particularly for manufacturing clients seeking digital transformation. This acquisition also brings 61 new manufacturing clients into Atturra’s fold, presenting cross-sell opportunities for its broader range of IT services and solutions.

Strategic Significance
The acquisition of ComActivity marks the completion of the three advanced acquisition opportunities identified in Atturra’s Capital Raising presentation on 13 November 2024. This strategic move is expected to solidify Atturra's position as a leader in ERP solutions while expanding its foothold in the manufacturing industry.

“This acquisition underscores our commitment to driving innovation and delivering comprehensive solutions to the manufacturing sector,” stated Atturra’s leadership. “By leveraging ComActivity’s strengths in Infor M3, we aim to provide even greater value to our clients as they embark on their digital transformation journeys.”

Financial Structure and Integration
The purchase price for the acquisition includes an upfront payment of $9 million in cash, with additional earn-out and post-completion considerations of up to $5.5 million. These earn-outs are contingent on ComActivity achieving performance milestones tied to audited EBITDA targets for FY25 and FY26. The total purchase price reflects a multiple of 6.95x forecast EBITDA. Additionally, integration costs for the acquisition have been budgeted at $320,000.

Proceeds from Atturra’s recent capital raise will fund the acquisition. Notably, the deal aligns with Atturra’s long-term growth strategy, as outlined during its capital-raising initiatives.

Future Opportunities
The acquisition expands Atturra’s expertise in Infor M3 solutions, complementing its existing Infor Pathway capabilities. With ComActivity’s strong reputation in manufacturing solutions, the integration of its services is expected to open new doors for Atturra in the sector. Moreover, the cross-selling potential with other Atturra products and services offers an additional growth avenue.