Atturra to acquire DalRae for up to AUD $20 million cash

Atturra has agreed to acquire DalRae Solutions in a move aimed at strengthening its capabilities within the SAP consulting and implementation sector.

The acquisition will see Atturra pay an upfront consideration of AUD $4.8 million in cash for DalRae, with additional earn-out and post-completion payments of up to AUD $15.2 million in cash. These additional payments are tied to DalRae achieving agreed-upon performance hurdles, based on audited EBITDA targets and key employee retention through calendar years 2025, 2026, and 2027. The overall purchase price, combining both upfront and deferred considerations, is based on a multiple of 6.15 times forecast EBITDA. Integration costs have been estimated at AUD $400,000.

DalRae Solutions, based in Brisbane, is known for its expertise in SAP's Business Technology Platform (BTP), S/4HANA, and Clean Core methodologies. The company delivers SAP software solutions across the Asia Pacific region and is recognised as an award-winning SAP partner. DalRae specialises in building and implementing solutions aimed at transformation of clients' business processes, serving a range of industry sectors including public sector, utilities, and complex mid-market industries.

The proposed transaction is expected to be EPS accretive in financial year 2026 for Atturra.

Atturra's acquisition of DalRae comes as the company seeks to build on its existing SAP client base and expand its suite of services around SAP technology. Atturra provides complementary consulting and technology services including Infrastructure Managed Services, OpenText ECM services, Data and Integration services, and Change and Adoption services specifically adapted to SAP.

DalRae has built a reputation within the SAP ecosystem for being the first recipient of SAP's Business AI Award and winning the SAP Industry Disrupter Award on multiple occasions. The firm is a member of the SAP AppHaus Network and focuses on delivering practical, human-centred, and AI-enabled solutions. It supports clients such as government agencies and utilities with a clean core approach orientated towards delivering tangible business impact.

Stephen Kowal, Chief Executive Officer of Atturra, commented on the transaction: "As a leading technology service provider with a strong track record of targeted and disciplined M&A, Atturra has consistently signaled its intention to establish a meaningful footprint in the SAP consulting and implementation space by being a trusted partner. The proposed DalRae acquisition marks an important step in Atturra's long-standing aspiration to expand meaningfully into the SAP ecosystem. By combining our national client footprint with the deep SAP expertise of the DalRae team, we are intending to significantly enhance our ability to deliver end-to-end enterprise solutions for our clients."

The completion of the acquisition is conditional upon the satisfaction of several conditions precedent outlined in the Share Purchase Agreement. These include obtaining change-of-control consents required under DalRae's material contracts. The agreement also contains additional typical provisions such as representations, warranties, and indemnities considered standard in transactions of this type. The transaction is anticipated to be completed on or around 30 June 2025, depending upon these conditions being met.

Founded in 2015, DalRae Solutions has contributed to significant digital transformation programmes in Australia and New Zealand, supporting social and regulatory reform projects. The company is noted for promoting clean core methodologies and its membership in the global SAP AppHaus Network. DalRae's approach is characterised by its focus on addressing complex challenges using pragmatic, human-centred solutions intended to deliver measurable business outcomes.

Atturra works with a wide variety of clients in Australia, including local government, utilities, education, defence, federal government, financial services, and manufacturing industries. It maintains partnerships with several global technology providers such as Boomi, Cisco, HP, HPE, Infor, Microsoft, Nuix, OpenText, QAD, Smartsheet, Snowflake, and Software AG, supporting clients in both the public and private sectors.