THE ACQUISITION PROGRAM
Our Client – The Buyer
Canon Business Services ANZ (“CBS”) is a market leader in the provision of digital transformation, business process optimisation, cloud technology, and secure IT managed services. This specialised entity was formally launched in 2019 by Canon Australia after its acquisition of Harbour IT and via a merger with the previously acquired NZ-based Converga. Headquartered in NSW, CBS employs over 1,700 people across ANZ and in the Philippines, with a primary focus on merging people, process, and technology to optimise customer operations.
In 2021, having bedded down the merger of its two foundation businesses, CBS launched a strategic growth program, centred on providing customers with complementary/adjacent solutions to CBS’s core infrastructure-as-a-service (“IAAS”) capabilities. In order to bolster inhouse resources, the CEO and board opted to seek external advisors to facilitate their M&A efforts. 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 the oversight of the due diligence and legal processes involving the exchange of information between multiple stakeholders
The Acquisition Strategy
As an initial step Johnsons worked closely with CBS’s leadership team to design a clear acquisition brief. It would target IT services providers operating in Australia and/or New Zealand. Other critical investment criteria included a proven Microsoft Azure offering, an established customer-base of SME &/or government organisations, strong annuity revenues, and an experienced team of technical staff.
With a mandate to focus on MS Azure and cyber security services, Johnsons’ research focused on Australian & New Zealand providers whose offerings would dovetail with CBS’s strong IAAS capabilities. Johnsons then ran a proactive direct marketing campaign that uncovered 19 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.
(Read more about how using a Specialised Mid-Market Business Broker Approach to growing your business through acquisitions could get you a better outcome – just like our client).
The Acquired Target
WA-based Satalyst is a Gold Microsoft Partner that specialises in cloud, security, and data services. The acquisition strengthened CBS’s application, security, data and AI capabilities, while providing Satalyst with the necessary backing to fast-track its own expansion plans.
What Our Client Had to Say
"In 2021 Canon Business Services ANZ ('CBS') engaged Johnsons Corporate to assist with identifying a pool of synergistic companies, which resulted in CBS securing a signed Offer & Acceptance with our preferred party, WA-based Satalyst. Johnson’s approach aligned with our acquisition strategy, and we were impressed with the level of professionalism and persistence provided by Johnsons. They made the search, selection and deal negotiation process a smoother experience for CBS, and we have no hesitation in recommending their services to others who are considering acquiring."
Luke Clark, CEO - Canon Business Services ANZ acquires Satalyst