- Atturra (ATA) set to purchase systems development integration and consulting services company Hammond Street Developments (HSD) for $6.5 million
- The purchase, through ATA subsidiary Veritec, will consist of an upfront consideration of $6 million in cash and $500,000 worth of Atturra shares
- Atturra will also make a post-completion payment of up to $2 million in cash subject to HSD achieving performance hurdles
- ATA says the acquisition enhances its “strong public sector portfolio” given HSD is a specialist Microsoft services provider to the government sector
- ATA shares close 4.74 per cent higher at $1 per share
Technology business Atturra (ATA) is set to purchase systems development integration and consulting services company Hammond Street Developments (HSD) for $6.5 million.
The purchase, through ATA subsidiary Veritec, will consist of an upfront consideration of $6 million in cash and $500,000 in Atturra shares.
Atturra will also make a post-completion payment of up to $2 million in cash subject to HSD achieving performance hurdles during FY23 and FY24. This will be funded from internal cash reserves.
The company said the purchase price represented five times the forecast HSD EBIT contribution to Atturra in FY24, and that the acquisition would have a “minimal impact” on its FY23 results.
Atturra described Melbourne-based HSD as a “specialist Microsoft services provider to the government sector, including the Victorian public sector” and said the acquisition enhanced ATA’s “strong public sector portfolio and Microsoft services client base”.
“The addition of HSD to the Atturra family is highly beneficial for our clients and shareholders and demonstrates our ongoing commitment towards growing our business in the government sector, in particular the Victorian public sector and to Microsoft, one of our main technology partners,” Atturra CEO, Stephen Kowal said.
“HSD has a very strong client focus, which is evident in their recurring revenues across their top 10 clients, and I am looking forward to working with Narendra and the HSD team.”
The transaction is expected to be completed around February 28, 2023.
ATA shares closed 4.74 per cent higher at $1 per share.