Quadrant acquires Australia enterprise IT business

Quadrant is part of a consortium supported by Arq management, including CEO Tristan Sternson, according to a release. The all-cash, no-debt deal gives the private equity firm rights to the Arq name. The listed company plans to rebrand in the near term.

Arq has maintained steady income growth in recent years, with revenue gaining 8% during 2018 to A$213 million, but profit has stalled in part due to a lack of diversification in the customer base. The company posted a A$2.3 million loss in 2018 after a A$14.3 million net gain the prior year.

The enterprise arm Quadrant is acquiring has been the main driver of revenue growth. The division saw revenue improve from A$95.3 million in 2017 to A$112.9 million in 2018 on the back strong performances in its mobile, data analytics, and cloud services interests. The enterprise business also serves clients in the Australian government.

Quadrant is targeting Australia's lower middle market through a growth fund that closed at A$400 million last year. Its first acquisitions were auction sites Graysonline and AreYouSelling, which focus on livestock and cars, respectively. Quadrant's ninth flagship fund closed at A$1.1 billion in 2017 with a mandate to invest companies with enterprise values of A$100-500 million.

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• Topics
• Australasia
• Support services
• Technology
• Buyouts
• Australia
• Quadrant Private Equity
• professional services
• SME