StepChange Holdings has completed its acquisition of Perth-based ICT advisory firm BroadReach, significantly boosting its digital transformation and government consulting capabilities.
- Acquisition of BroadReach completed, adding ~40 senior consultants
- BroadReach’s strong WA government agency relationships enhance StepChange’s market position
- Nearly 6 million shares issued to BroadReach vendors, escrowed for 12 months
- Expansion into enterprise architecture, ICT strategy, and digital transformation advisory
- StepChange leverages SAP-based ERP expertise alongside new advisory services
Strategic Acquisition Strengthens StepChange’s Advisory Portfolio
StepChange Holdings Limited (ASX – STH) has officially completed the acquisition of BroadReach Group Pty Ltd, a well-established Perth-based ICT advisory firm. This move marks a significant expansion in StepChange’s consulting capabilities, particularly in enterprise architecture, ICT strategy, and digital transformation advisory services.
BroadReach, founded in 2008, is recognised for its senior-level expertise and trusted relationships with key Western Australian government agencies, including WA Police, Department of Communities, Synergy, DPIRD, and DWER. Employing approximately 40 senior consultants, BroadReach’s integration into StepChange’s operations is expected to deepen the company’s footprint in the public sector and enhance cross-selling opportunities.
Enhancing Government Sector Engagement and Digital Transformation
The acquisition aligns with StepChange’s strategic focus on ERP transformation and digital modernisation, primarily delivered through SAP software solutions. BroadReach’s advisory specialisation complements this by offering high-impact enterprise architecture and ICT strategy services, which are critical for complex digital transformation programs.
StepChange’s Managing Director, Shane Bransby, emphasised the value of BroadReach’s long-term government relationships and senior consultancy expertise, which are expected to accelerate StepChange’s growth in digital transformation and cloud migration services. The acquisition also opens avenues for developing comprehensive ICT roadmaps and business analysis capabilities.
Consideration and Share Issuance Details
As part of the acquisition, StepChange issued 5,992,011 shares to BroadReach’s vendors. These shares are subject to a 12-month escrow period, reflecting a commitment to long-term integration and value creation. Further details on the share issuance were disclosed in an Appendix 2A filing on 9 January 2026.
This share-based consideration underscores StepChange’s strategy to preserve cash while aligning vendor incentives with the company’s future performance. However, the escrow period may temporarily limit liquidity for those shares.
Looking Ahead – Integration and Market Impact
The successful integration of BroadReach’s team and client base will be pivotal for StepChange’s next growth phase. Investors will be watching closely to see how well the combined entity leverages its enhanced capabilities to capture new contracts, especially within the government sector.
While the acquisition strengthens StepChange’s competitive positioning, it also introduces integration risks typical of such deals. The company’s ability to maintain BroadReach’s client relationships and deliver seamless advisory services alongside its ERP offerings will be critical to realising the anticipated benefits.
Bottom Line?
StepChange’s acquisition of BroadReach sets the stage for accelerated growth in government digital transformation, but integration execution will be key.
Questions in the middle?
- How will StepChange integrate BroadReach’s consultants and maintain client retention?
- What financial impact will the acquisition have on StepChange’s earnings and cash flow?
- Will the expanded capabilities translate into new government contracts or market share gains?