Breccan McLeod-Lundy and Josh Forde (Ackama)
Melbourne-based technology company Ackama has acquired fellow developer Common Code for $A2.7 million.
The acquisition aims to bring two teams sharing the same ‘tech for good’ ethos together, as both companies specialise in technology projects tackling social issues across Australia and New Zealand.
Ackama is acquiring Common Code with a mix of cash and shares for an amount of A$2.7M, an EBIT multiple of between 3x and 4x.
The two entities’ combined revenue will jump to more than A$11 million, up from A$8 million in FY20, 75 per cent of which is realised in Australia. The team will grow to 60 tech developers, consultants and designers.
This acquisition will enable both teams to leverage each other’s expertise in particular verticals, and increase Ackama’s capabilities in product management, user experience, cloud-native development and DevOps, all of which are areas currently in strong demand.
Both management teams remain in place with an objective to continue growing the team towards 100 employees in 2023.
“Ackama is not driven by an obsession for fast growth, but rather sustainable growth with an emphasis on excellence and delivering quality digital services to Aussie socially-focused businesses,” Ackama founder Breccan McLeod-Lundy said.
“In the world of tech consultancies, this is a key differentiator that I think makes us and Common Code special partners for organisations.
“When we met over coffee in Melbourne, we instantly realised that we had shared values and vision and that together there was an opportunity to increase our capacity to help communities or businesses create a better world. We are really enthusiastic about starting a new chapter of our story with such a like-minded team.”
Ackama’s founder and CEO Breccan McLeod-Lundy founded the company in 2010 in Wellington, New Zealand, establishing himself as an independent developer under the brand Rabid Technologies.
He was quickly joined by current Ackama director Josh Forde. In 2018, Rabid Technologies expanded to Australia through the acquisition of Melbourne-based tech company Squareweave, which specialised in developing technology and software for social enterprise and rebranded to Ackama.
Common Code was founded in 2010 in Melbourne by developer Daryl Anthony and has since grown to a 30-people tech consultancy working with large-scale brands including global renewable energy player Octopus Energy, Ikea, Kogan.com, and Cotton On.
The Common Code team also has deep ties with the Melbourne start-up ecosystem.
This acquisition will place Ackama in a better position to continue competing with larger ICT players and deliver larger-scale projects while maintaining its development services. The Common Code brand will continue to operate for the foreseeable future.
“This is a valuable partnership that is greater than either company could create on their own and an opportunity to further develop tech communities in other APAC ecosystems,” Anthony said. “As founder of Common Code I’m proud of the role we’ve played over the last decade and am excited for the role we’ll play in the future with Ackama.”
The two companies have worked with numerous organisations on social projects including The Good Sports programme for the Alcohol and Drug Foundation; Headspace (the National Youth Mental Health Foundation); the Victorian Women’s Trust; the New Zealand Sign Language Dictionary, and other initiatives for the Australian government and the New Zealand governments.
