Perth-based Microsoft solutions and services partner Velrada have announced that it has shelved plans for an ASX listing in favour of an acquisition offer from ASG Group, a wholly-owned subsidiary of Nomura Research Institute (NRI).
Under the terms of the deal, ASG will acquire 100 per cent of the shares in Velrada.
ASG Group CEO Dean Langenbach said, “Velrada is an incredible West Australian success story. It has leveraged its Microsoft partnership to facilitate the digital transformation of some of Australia’s biggest organisations including Sodexo, Downer, BHP, and Rio Tinto.”
“Velrada’s acquisition allows us to boost our capacity for seamless delivery of Microsoft’s technology, and we are proud to be aligned with a company whose extensive West Australian foothold, and growing global footprint already includes major European customers and the UK Government.”
Velrada is a true West Australian success story. It is one of Microsoft’s largest Australian implementation partners, and a leading provider of transformational business solutions. The 13-year old company has fewer than five shareholders, and has grown its annual revenue to a record of more than $45 million despite never having raised outside capital.
Velrada CEO Robert Evans said, “It has been an incredible journey for Velrada and we are delighted with the outcome. We bootstrapped this company ourselves, and through hard work and innovation, have grown Velrada into one of the most valuable technology companies in Western Australia. With this partnership, Velrada will be well positioned to continue with its rapid expansion in Australia and overseas.”
“While Velrada will remain a standalone business, ASG’s investment will accelerate our growth, global scale, and alignment with our key customers. Our partnership with ASG will allow us to maintain our close relationship with Microsoft, and provide our valued employees with enhanced global and national career opportunities.”
Under the terms of the deal, the Velrada leadership team will remain in place, and continue working closely with ASG and its parent company NRI. Velrada will also maintain its identity and focus on the Microsoft space.
