Atturra Limited is set to acquire DalRae Solutions, a specialist SAP consultancy, in a deal valued up to $20 million that aims to deepen its SAP capabilities and market reach.
- Atturra to acquire DalRae Solutions for $4.8m upfront plus up to $15.2m earn-out
- DalRae specializes in SAP S/4HANA, Business Technology Platform, and Clean Core methodologies
- Acquisition expected to be EPS accretive in FY26
- DalRae recognized with multiple SAP awards including inaugural Business AI Award
- Deal completion targeted around 30 June 2025, subject to contract consents
Strategic Acquisition to Boost SAP Capabilities
Atturra Limited, a prominent Australian technology services provider, has announced its intention to acquire DalRae Solutions, a Brisbane-based SAP consultancy renowned for its expertise in SAP S/4HANA and Business Technology Platform (BTP) transformations. This move signals Atturra’s commitment to expanding its footprint within the SAP ecosystem, a critical area of growth in enterprise IT services.
The acquisition involves an upfront cash payment of $4.8 million, with additional earn-out payments potentially reaching $15.2 million, contingent on DalRae meeting specific EBITDA and employee retention targets over the next three years. This structure aligns incentives and underscores confidence in DalRae’s growth trajectory and operational stability.
DalRae’s Market Position and Expertise
DalRae Solutions has built a strong reputation as an award-winning SAP partner, notably receiving the inaugural SAP Business AI Award and multiple SAP Industry Disrupter Awards. Its specialization in clean core methodologies and AI-enabled, human-centered solutions has positioned it as a trusted advisor to government, utilities, and mid-market clients across Australia and New Zealand.
By integrating DalRae’s capabilities, Atturra aims to enhance its service offerings, combining its existing SAP client base and complementary IT services with DalRae’s deep technical expertise. This synergy is expected to deliver comprehensive end-to-end enterprise solutions, addressing complex digital transformation needs.
Financial and Operational Implications
The acquisition is forecasted to be earnings per share (EPS) accretive by fiscal year 2026, reflecting anticipated revenue growth and operational efficiencies. Integration costs have been budgeted at $400,000, a modest investment given the strategic benefits. However, the deal’s completion hinges on obtaining necessary change-of-control consents under DalRae’s material contracts, a standard but critical procedural step.
Atturra’s CEO, Stephen Kowal, highlighted the acquisition as a pivotal step in the company’s long-term strategy to establish a meaningful presence in the SAP consulting space. The combined entity is expected to leverage national reach and technical depth to better serve clients navigating complex SAP transformations.
Looking Ahead
As the deal approaches its anticipated closing date around 30 June 2025, market watchers will be keen to see how effectively Atturra integrates DalRae’s team and technology. The success of this acquisition could set a precedent for further consolidation in the Australian SAP consulting market, where demand for cloud-based and AI-driven enterprise solutions continues to accelerate.
Bottom Line?
Atturra’s DalRae acquisition marks a decisive move to lead in SAP innovation, but execution risks remain as integration unfolds.
Questions in the middle?
- Will DalRae meet the ambitious EBITDA and retention targets to unlock full earn-out payments?
- How smoothly will Atturra integrate DalRae’s operations and culture post-acquisition?
- What new SAP service offerings or client wins will emerge from this expanded capability?