IT services provider, Brennan IT, is looking for acquisition opportunities after delivering record growth during the 2013 financial year.
Brennan IT CEO, Dave Stevens, said it was on the hunt for acquisitions to further increase its lead in the market, and had about $10 to $20 million to splash or maybe more if it was a compelling target.
“It depends on the fundamentals of what we’re buying,” he said. “It would be within the managed services space, software development or Cloud, those sorts of businesses.”
The potential business target must be a solid fit with Brennan IT‘s culture, have a strong foothold in the mid-market (50 to 1000 seats) and offer complementary services. It must also provide positive earnings in a minimal time period, Stevens said.
“Any deal needs to make a positive impact on the bottom line in a relatively short time period. As a business we are focused on profitable growth, not cash burn to buy share,” he said.
During the fourth quarter, Brennan IT delivered 43 per cent higher sales when compared to the same time last year. This is the highest quarter achieved for the business during its 16 year history. Revenues were also up across its services offerings.
It specifically highlighted June as a record breaking month, achieving 157 per cent of its budget with six of its seven sales teams achieving beyond their targets.
Stevens said most of the growth came from its Cloud, software development teams and managed services business.
“Two of those three are our largest businesses,” he said. “There’s probably only a handful of Cloud providers in market that are getting any value. You’ve got to be able to sell recurring services not projects or hardware. You’ve got to really understand the technology, how to best use it to provide products with solutions and then how to wrap your solutions around a Cloud product.”
The company boasts it has secured 21 per cent market share along the east coast. Some of its major new clients it added to its books include Retail Apparel Group, MPower, Clifford Hallam, Maritime Super and Fuchs. During the past 12 months, it has won 374 new clients, bringing the total to 2177 for the year.
Stevens said it had also significantly expanded its team and was actively looking to fill about 23 roles across its Brisbane, Sydney and Melbourne offices.
“We’re eager to cement our number one position in the market and acquisitions will play a key role in that regard whether it’s by boosting our customer base, enhancing our solutions portfolio, bringing in skills and resources, or growing our geographic footprint,” Stevens said.