Atturra Bolsters SAP Expertise with DalRae Acquisition in $20M Deal
Atturra Limited has completed its acquisition of DalRae Solutions, a specialist SAP consultancy, aiming to deepen its footprint in SAP services across Australia and New Zealand. The deal includes upfront and performance-based payments totalling up to $20 million.
- Acquisition of DalRae Solutions completed by Atturra subsidiary
- Upfront cash payment of $4.8 million plus earn-out up to $15.2 million
- DalRae specialises in SAP S/4HANA, Business Technology Platform, and Clean Core methodologies
- Deal based on 6.15x forecast EBITDA with integration costs budgeted at $400,000
- Acquisition expected to be earnings accretive in fiscal year 2026
Strategic Expansion into SAP Consulting
Atturra Limited, a prominent Australian technology services company, has officially completed the acquisition of DalRae Solutions, a Brisbane-based SAP consultancy renowned for its expertise in SAP S/4HANA and Business Technology Platform (BTP) transformations. This move marks a significant step in Atturra's ambition to establish a stronger presence within the SAP ecosystem, leveraging DalRae's award-winning capabilities to enhance its service offerings.
DalRae’s reputation as a pioneer in clean core methodologies and its recognition through multiple SAP Industry Disrupter Awards and the inaugural SAP Business AI Award underscore its innovative approach to digital transformation. The company’s focus on delivering pragmatic, human-centred solutions aligns well with Atturra’s client-centric culture and broad technology services portfolio.
Financial Terms and Integration Outlook
The acquisition was structured with an upfront cash consideration of $4.8 million, supplemented by earn-out payments potentially reaching $15.2 million, contingent on DalRae meeting specific audited EBITDA targets and key employee retention goals over the next three years. The total purchase price reflects a multiple of 6.15 times forecast EBITDA, indicating confidence in DalRae’s growth prospects and profitability.
Atturra has budgeted $400,000 for integration costs, signalling a measured approach to merging operations and cultures. Management expects the acquisition to be accretive to earnings per share by fiscal year 2026, suggesting that the deal will contribute positively to Atturra’s financial performance in the near term.
Complementary Capabilities and Market Reach
DalRae’s expertise in SAP’s Business Technology Platform and clean core methodologies complements Atturra’s existing SAP client base and its broader capabilities, including infrastructure managed services, enterprise content management, data integration, and change management. This synergy positions Atturra to offer more comprehensive, end-to-end enterprise solutions across sectors such as government, utilities, and mid-market industries.
Both companies emphasize cultural alignment and shared values, with Atturra’s CEO Stephen Kowal highlighting the strategic importance of integrating DalRae’s team and capabilities. DalRae’s CEO Chris Rae echoed this sentiment, noting the opportunity to scale impact while maintaining the company’s distinctive approach to SAP transformation.
Looking Ahead
As Atturra integrates DalRae’s operations, the combined entity aims to lead the next wave of SAP transformation initiatives in Australia, New Zealand, and potentially beyond. The acquisition not only strengthens Atturra’s competitive position but also reflects ongoing consolidation trends within the IT consulting sector, where specialised expertise in platforms like SAP is increasingly in demand.
Bottom Line?
Atturra’s acquisition of DalRae sets the stage for accelerated growth in SAP consulting, but future performance hinges on hitting ambitious earn-out targets and seamless integration.
Questions in the middle?
- Will DalRae meet the EBITDA and employee retention targets to unlock full earn-out payments?
- How effectively will Atturra integrate DalRae’s team and culture without disrupting client delivery?
- What new market opportunities could emerge from the combined SAP capabilities across Australia and New Zealand?
