Atturra launches $50 million cash call to fund M&A

ASX-listed IT solutions business Atturra is seeking to raise $50 million and has hired Morgans and Unified Capital Partners to oversee the deal.

The raising has been structured as a fully-underwritten, 1-for-4, accelerated, pro-rata, non-renounceable entitlement offer, priced at 80¢ a share. The offer price represents a 0.6 per cent premium to the last traded price and a 5.6 per cent discount to the five-day volume-weighted average price.

“Atturra plans to use funds raised from the capital raising to fund future strategic acquisitions, balance sheet acquisitions, and the costs of the offer,” a term sheet sent to fund managers on Tuesday, said.

Atturra is an Australian ASX-listed advisory and IT services business with more than 800 employees. To bulk up, it has spent roughly $90 million in cash and stock, buying companies over the past 12 months.

It finalised its acquisition of Cirrus Networks for $57.3 million or 6.3¢ a share on Monday. Cirrus, a listed managed service provider specialising in IT infrastructure with a large customer base in Canberra and Western Australia, is its largest deal.

Atturra chief executive Stephen Kowal told The Australian Financial Review that Cirrus would give the company the balance sheet and scale it needed to compete for projects against foreign-owned IT businesses such as IBM, Accenture and DXC.