Atturra is set to acquire specialist Microsoft partner Hammond Street Developments (HSD) for $6.5 million.
A service provider for the government sector, including the Victorian public sector, HSD is a systems development, integration and consulting services company with locations also in Sydney, Canberra and Adelaide.
The purchase price consists of $6 million in cash and $500,000 in Atturra shares. Additionally, there is also the potential for earn-out/post completion consideration of up to $2 million in cash based on HSD reaching targets during the financial years ending in 2023 and 2024.
According to a statement from Atturra on the Australian Securities Exchange, the price, including upfront and deferred consideration, is based on the earnings before interest and tax (EBIT) consideration to Atturra in FY24 multiplied by five.
“The addition of HSD to the Atturra family is highly beneficial for our clients and shareholders and demonstrates our ongoing commitment towards growing our business in the government sector, in particular the Victorian public sector and to Microsoft, one of our main technology partners,” said Atturra CEO Stephen Kowal.
“HSD have a very strong client focus which is evident in their recurring revenues across their top 10 clients and I am looking forward to working with [HSD CEO Narendra Tomar] and the HSD team.”
During FY22, Atturra completed three acquisitions, which include Mentum Systems, Kettering Professional Services and Hayes Information Systems.
Additionally, in July, Atturra was engaged in a bidding battle with Brennan for publicly listed MOQ Limited, where Atturra eventually pulled out of negotiations after Brennan's offer jumping from $0.070 cents to $0.075 cents per share, valuing the deal at $23.3 million.
It was acquired and subsequently ceased trading on the ASX in November.