Atturra acquires NZ's Plan B for NZD20.0M to expand services

Atturra Limited has announced the acquisition of New Zealand-based Plan B, a provider of cloud, network connectivity, data centre and managed services.

Atturra, through its subsidiary Cirrus Networks Holdings, will acquire Morgan Holdco Limited, known as Plan B, to strengthen its managed services and cloud offerings across New Zealand. This acquisition is expected to provide a stable revenue stream for the company.

Plan B operates a national network of five primary data centres spread across New Zealand's North and South Islands. Through this acquisition, Atturra will gain over 1000 clients across Australia and New Zealand.

The initial payment for the acquisition amounts to NZD20.0M in cash, with further consideration of up to NZD4.5M based on Plan B's achievement of performance targets by FY25, evaluated against audited EBITDA. The overall purchase price is calculated on a 6.2x forecast EBITDA multiple, with integration costs anticipated to be approximately AUD $580,000.

Converting the upfront consideration to Australian currency, Atturra will pay AUD $19.43M, with potential additional payments reaching AUD $4.09M, contingent on future financial performance. The currency exchange rate applied is 1:1.1015, AUD to NZD.

The funds for this acquisition will come from a recent capital raising initiative by Atturra, with the transaction expected to be finalised on or around 2 December 2024. The agreement includes provisions typical of such transactions, including conditions, guarantees, and indemnities.

Stephen Kowal, Chief Executive Officer of Atturra, commented on the acquisition: "The acquisition of Plan B fits into Atturra's ambition to be a leader in managed services and this expands Atturra's presence into New Zealand. We see the acquisition of Plan B as a launchpad for further expansion both geographically and in capability, particularly with its network of five primary DCs across New Zealand. Plan B is recognised as a trusted partner in New Zealand and this acquisition perfectly aligns with our strategy."

Kowal also noted the integration plans, stating, "We welcome Frazer Scott and the wider Plan B team to Atturra and look forward to working closely with them to integrate the Plan B business into Atturra."

Frazer Scott, Chief Executive Officer of Plan B, expressed enthusiasm about the merger, saying, "The team at Plan B are delighted to be joining Atturra in what is a significant milestone for our companies. Plan B and Atturra have a shared focus on people and customer success, making the partnership a natural fit. The team at Plan B remains committed to the business and delivering exceptional outcomes for customers, who will also benefit from the extensive capabilities and resources that Atturra brings."

Plan B is highly regarded for its managed network, connectivity, and cloud services within New Zealand and Australia. The company's data centres are linked via a high-speed network providing reliability, control, and real-time flexibility.