THE ACQUISITION PROGRAM
Our Client – The Buyer
Headquartered in NSW, ASI Solutions is a leading IT managed services provider that services commercial customers across Australia’s eastern seaboard. Over its 35+ years of operation, the Business has worked with a wide range of both private and public sector organisations. It focuses on providing holistic technology solutions – from hardware and software procurement to complete managed services – that harness innovation and advanced technology to streamline organisational processes and transform capabilities. Turning over more than $160M, ASI is a highly entrepreneurial business and was named the #1 Fastest Growing Private Australian Company in 2020 by IBISWorld.
Supplementing strong organic growth, the Business’s directors strategically use acquisitions as a means of accelerating diversification and with the goal of cementing ASI’s position as one of Australia’s leading national IT Services Providers. In 2019, they completed the purchases of Canberra-based Forward IT and New Zealand-based BEarena. Then in late 2020, to bolster their in-house resources, ASI’s directors sought external advisors to facilitate their M&A efforts going forward. They engaged Johnsons to provide hands-on practical assistance – spanning the identification and qualification of suitable targets; the management of terms negotiations and price expectations; and overseeing the due diligence and legal processes involving the exchange of information between multiple stakeholders.
The Acquisition Strategy
Johnsons worked with ASI to design a clear acquisition brief that would target IT product & services businesses operating in Australia and/or New Zealand with revenues up to $25M. Other investment criteria included an established offering in IT services, managed services, and/or hardware sales; a portfolio of B2B customers; and an experienced team of technical staff.
Custom research spanned a number of sectors complementary to ASI’s areas of strategic focus – including IT Managed Services, hardware distribution, audiovisual solutions, and unified communications. Johnsons then ran a proactive direct marketing campaign that uncovered 33 qualified, off-market acquisition targets. Further vetting and negotiations with a shortlist of preferred targets resulted in the execution of an Agreed Terms Sheet between the buyer and its top-rated target.
The Acquired Target
From its base in the regional city of Mildura, Int Tec Solutions provides IT support services to businesses across northeast Victoria. Its offering combines the latest technology with skilled IT experts and results in increased efficiency, reduced costs, and more vigorous security for its customers. For Int Tec, this was an opportunity to establish a succession strategy for its original owners.
What Our Client Had to Say
"Within a very short space of time, Johnsons was able to identify and bring forward several genuine “off market” opportunities for our consideration. Once several live acquisition targets were selected, Johnsons demonstrated a strong ability to facilitate negotiations while managing vendor expectations, which culminated in our securing signed Offer & Acceptance with our preferred candidate.
Overall, the team at Johnsons made the whole process a seamless experience. Nathan and I remain impressed with the level of structure, professionalism and commitment that they brought to this engagement – even going so far as to offer post acquisition guidance to smooth the merger process."Justin Lowe, Co-Director - ASI Solutions acquires Int Tec Solutions