Atturra Limited (ASX: ATA) Completes Acquisition of ComActivity
Acquisition Overview
Atturra Limited (ASX: ATA) has completed the acquisition of ComActivity, a top provider of manufacturing software solutions based on Infor’s M3 product suite. This acquisition strengthens Atturra’s market position within the enterprise resource planning (ERP) sector in Australia and New Zealand.
Financial Details
The acquisition includes an upfront cash consideration of $9 million. Additionally, there is an earn-out component of up to $5.5 million, contingent on ComActivity meeting certain performance targets in FY25 and FY26. The total purchase price is based on a 6.95x multiple of forecast EBITDA, with integration costs estimated at $320,000.
Strategic Importance
This deal not only integrates 61 new clients into the Atturra portfolio but also amplifies its capabilities in the Infor M3 space. The acquisition forms part of Atturra’s strategy outlined in their Capital Raising presentation released in November 2024. Proceeds from that raise were earmarked to finance this acquisition.
Executive Comments
Stephen Kowal, CEO of Atturra, expressed enthusiasm about the acquisition: “This is a perfect fit for our strategy, strengthening our capabilities in the manufacturing sector. With ComActivity, we can deliver cutting-edge solutions powered by Infor’s M3 product suite.” He extended a warm welcome to Jason Levick and ComActivity’s team, looking forward to an effective integration.
Jason Levick, Co-Founder of ComActivity, stated, “We are thrilled to join forces with Atturra. Together, we can amplify our ability to deliver world-class solutions while maintaining the strong culture that has driven our success.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Atturra. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.