Technology solutions provider ARQ Group has acquired tech consultancy Diaxion in a move to strengthen its presence in Canberra.
Acquired for an unspecified amount, the deal sees the consultancy become part of ARQ Group, with the provider increasing its headcount to 450, allegedly with no redundancies taking place. Additionally, Diaxion’s founder, Tony Wilkinson, will now head advisory at ARQ Group.
The combined business will also gain Diaxion’s advisory and digital transformation capabilities, which ARQ Group CEO Tristan Sternson said complements ARQ Group’s existing prowess in data analytics, artificial intelligence and process automation.
According to Sternson, the provider was interested in expanding ARQ Group’s footprint into Canberra following it winning numerous government tenders and projects with various federal agencies.
“Diaxion’s extensive experience working with federal departments, along with our existing Canberra offices, will provide ARQ Group with the opportunity to offer a wider suite of services to public sector agencies," he said.
Sternson also flagged that Diaxion was identified as the “ideal” company to fuel its ongoing expansion efforts.
“Following extensive due diligence and developing a deep understanding and appreciation of Diaxion’s business and leadership, we knew they were a perfect fit that complemented the industry-leading offer we’re building for our clients,” he said.
"ARQ Group can now offer its customers in-house advisory capabilities and bolster our professional services by leveraging Diaxion’s team of industry leading experts.
“As an Australian owned and operated business, we are now able to deliver better, more targeted results for our clients. This gives us an edge when competing against big multinationals who are only concerned about contract size and how much of it they can capture.”
Diaxion will continue to operate under its own brand for the next 12 months. After this, it will fully integrate under the ARQ brand.
The acquisition comes more than a year after the enterprise services division of ARQ Group was acquired by Australian private equity firm Quadrant in February 2020 for $35 million.
“When we first invested in ARQ Group last year, we did so because we saw the huge digital transformation tasks ahead for many Australian companies and governments and knew ARQ Group was ideally positioned to help bridge that technical chasm,” said Simon Pither, partner of Quadrant Private Equity and chairman of ARQ Group.
“Due to COVID-19 that digital transformation has moved faster than we initially anticipated, but I’m proud of how the ARQ Group team has responded and continued delivering incredible results for its customers.”
Meanwhile, the small- to medium-sized business of ARQ Group rebranded to Webcentral after the enterprise services divison’s sale, which has been going through its own acquisition process by telco carrier 5G Networks.