THE ACQUISITION PROGRAM
Our Client – The Buyer
Lanier (Australia) Pty Ltd is a leading provider of document management solutions and technology-based services to the SME and Corporate markets in Australia and overseas. The Business is a wholly-owned subsidiary of Japan-based Ricoh Company Ltd, a global provider of electronic imaging solutions. Lanier Australia employs more than 165 staff with headquarters in Port Melbourne, Victoria. The Business operates through offices in every major capital city and an extensive national dealer network, altogether generating annual turnover of circa AUD $100M. www.lanier.com.au.
Ricoh forwarded a directive to Lanier to diversify its offering into IT Services. The parent company was responding to changing market conditions, which saw the accelerating merger and development of new technologies drive growth in customer demand for support services. Lanier decided to implement this strategy via the purchase of a suitable business that would enable it to quickly establish a National IT Services division. Lanier engaged Johnsons Corporate as specialist Australian mid-market business brokers to execute a national Acquisitions Campaign on its behalf.
The Acquisition Strategy
Some of the attributes Lanier sought in a target included: a comprehensive B2B IT Services offering, including networked solutions and remote support; revenues between $5 million to $20 million; an appropriately skilled team of engineers; key senior management in place, and; a national footprint including all major cities.
Johnsons’ proprietary research focused on the IT Managed Services sector, identifying businesses along the East Coast of Australia with revenues of $5M to $15M and management in place. Johnsons ran a proactive direct marketing campaign that within 6 weeks resulted in a shortlist of 6 qualified, off-market acquisition targets. Further vetting and negotiations with these parties resulted in the execution of an Agreed Terms Sheet between the buyer and its preferred 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
Inspire IT Pty Ltd, a leading provider of IT Managed Services and IT Infrastructure solutions servicing customers in all major cities across Australia, was acquired and incorporated into Lanier to form the new Lanier IT Services division.
What Our Client Had to Say
"We were most pleased with the acquisition services provided by Johnsons Corporate. They coupled a high level of professionalism with a 'no nonsense' approach throughout the entire acquisition process. In particular, the lengthy and complex negotiations conducted with our final target were skillfully assisted by the Lead Advisor at Johnsons."John Hall, Managing Director - Lanier Pty Ltd, NSW