Atturra has put in a bid to fully acquire publicly listed IT services provider MOQ Limited for $15 million in a move that could create "one of Australia’s largest IT services businesses".
The IT consultancy, formerly known as FTS Group, has offered to buy 100 per cent of MOQ’s shares for 0.05 cents in cash per MOQ share as part of a Scheme of Arrangement.
The offer comes as MOQ informs shareholders of its ongoing operational challenges and trading losses.
In particular, the Australian Securities Exchange- (ASX) listed company cited its unprofitable professional services contracts, although it claimed to have made “significant progress” on fixed fee arrangements.
Earlier this year, MOQ said it would conduct a review of its professional services business and operations following a $3.5 million write-off and provide for contract cost overruns.
MOQ said it will inform shareholders of whether the acquisition is in their interests around late July 2022.
“The Board of MOQ views the Atturra offer as a compelling opportunity for MOQ shareholders to realise immediate value for their shareholding,” said David Shein, MOQ’s non-executive chairman.
“We are confident that this merger will have a positive impact for both our existing and future customers by leveraging the combined group’s significant experience, product knowledge, IT expertise and resources. The Atturra transaction will provide significant career opportunities for our staff, and we look forward to the journey ahead.”
At the end of last year, MOQ's CEO Joe D’Addio resigned from the company after more than six years with Peter Ward stepping into his role.
Atturra has previously noted its intention to expand its managed services arm through acquisition. For Atturra, the deal provides "significant opportunities" to expand its Microsoft footprint, while providing additional revenue opportunities and accelerating geographic growth.
"The combined group’s current and future talent will be able to benefit from the transaction, through access to a larger resource base and expanded service offering, leading to growth and development opportunities," Atturra told shareholders.
Atturra CEO Stephen Kowal called MOQ an "icon" of Australia's IT services landscape.
"The combination of MOQ and Atturra accelerates Atturra’s growth and is a positive step towards the fulfillment of our vision in becoming Australia’s leading IT solutions and advisory organisation," he said.
"This acquisition is directly aligned to our prospectus objective to expand our managed services through potential acquisition. Post-acquisition Atturra plans to invest heavily in the MOQ business to accelerate its growth, and to ensure that appropriate systems and practises are in place to support the growth."