Atturra Limited is set to acquire Blue Connections Pty Ltd for $18 million upfront plus earn-out, significantly boosting its managed services portfolio and establishing a new Victorian hub.
- Acquisition of Blue Connections by Atturra’s subsidiary Cirrus Networks
- Upfront $18 million cash plus up to $7.5 million earn-out based on performance
- Blue Connections expected to add $2.5m EBITDA in FY26 and $3.5m in FY27
- Expansion of managed services capabilities and client base with minimal overlap
- Establishment of a key operational hub in Victoria supporting national growth
Strategic Acquisition to Broaden Managed Services
Atturra Limited, a prominent player in the Australian technology services sector, has announced its intention to acquire Blue Connections Pty Ltd through its subsidiary Cirrus Networks Holdings. The deal, valued at an upfront $18 million in cash with potential earn-out payments of up to $7.5 million, marks a significant step in Atturra’s strategy to scale its managed services offerings.
Blue Connections, established in 1997, is a well-regarded managed services provider and systems integrator with a strong footprint across mid-market, enterprise, and government sectors. Its Melbourne-based facilities include a Network Operations Centre, experience and training centres, and a configuration zone, underscoring its comprehensive service capabilities.
Complementary Client Base and Enhanced Capabilities
One of the key attractions of Blue Connections for Atturra is the minimal client overlap, which presents an opportunity to diversify and broaden revenue streams. Blue Connections’ expertise spans networking, security, unified communications, and cloud solutions, including its status as a Microsoft Partner and certified Microsoft Cloud Solution Provider. This complements Atturra’s existing portfolio and strengthens its position in the managed services market.
Financially, Blue Connections is expected to contribute more than $2.5 million in EBITDA in the 2026 financial year, rising to over $3.5 million in 2027. These projections, alongside a modest $500,000 budgeted for integration costs, suggest a promising return on investment and operational synergy potential.
Sustainability and Culture as Added Value
Beyond financials, Blue Connections brings a strong commitment to sustainability, having been certified Carbon Neutral for three consecutive years. Its Great Place to Work certification highlights a people-first culture, which aligns well with Atturra’s values. The acquisition also reinforces Atturra’s national expansion ambitions by establishing a key operational hub in Victoria.
Completion of the acquisition is anticipated around 31 August 2025, subject to customary conditions including change-of-control consents. Atturra’s CEO Stephen Kowal emphasised the strategic fit and growth potential, signalling confidence in the deal’s ability to enhance the company’s market position.
Bottom Line?
Atturra’s acquisition of Blue Connections sets the stage for accelerated growth in managed services, but integration execution and performance hurdles will be critical to watch.
Questions in the middle?
- How will Atturra manage integration risks and retain key Blue Connections staff?
- What specific synergies and cross-selling opportunities will emerge post-acquisition?
- How might the earn-out structure influence Blue Connections’ operational priorities?