AUCloud has announced that it has entered into binding agreements to acquire three strategically aligned businesses.
AUCloud has entered into binding agreements for the acquisition of:
- PCG Cyber – a cyber security consultancy firm specialising in Australian Government security advice and operations.
- Venn IT – a Queensland and South Australia based MSP and professional consulting business, data resilience & backup protection specialist servicing customers in the mining, financial services, education, and distribution sectors.
- Arado – is a suite of cloud and managed services, with a strong presence in Queensland. Arado has a customer base in State & Local Government and enterprises accounts across various sectors, including agriculture, industrial, health and resources.
AUCloud CEO and managing director Peter Maloney said, “The announcement of the acquisitions marked a significant step in our commitment to enhancing our comprehensive suite of cyber security and secure cloud solutions for our customers and positioned the company on a transformational growth trajectory,” Mr Maloney said.
“This expansion not only broadens AUCloud’s product, revenue and geographic spread but also integrates the unique technologies, skills and expertise of highly skilled providers into our operations. The move is set to enhance AUCloud’s ability to deliver end-to-end cyber security, secure cloud solutions and consulting services to cater to the growing needs of Australian organisations and governments,” Mr Maloney added.
“This expansion executes on the strategic review announced in June 2023, to build, partner & acquire new capabilities in cyber security and partner in the multi-Cloud and Public Cloud markets to leverage the capital invested in the existing four Sovereign Cloud platforms. The strategically aligned acquisitions refocus AUCloud as a capital-light, diversified cyber security and cloud solution offering with a national footprint.” Mr Maloney said.
AUCloud says it is forecast to achieve FY25F Underlying EBITDA of ~$4.7m on FY25F revenue of $36.6m, with transition to positive monthly operating cash flow in 1HFY25.
The Company says it intends to continue M&A activity to scale up quickly through further waves of accretive acquisitions.
AUCloud adds that it is undertaking an accelerated renounceable entitlement offer of up to $30 million, underwritten to $25 million to fund the cash consideration under the Acquisitions and transaction costs.
The balance of the net proceeds will be used toward funding working capital requirements. Ord Minnett Limited is acting as Sole Lead Manager. AUCloud was advised by Maddocks, Nexia Australia and Ord Minnett.
