Alceon-backed IT biz EFEX buys Adelaide trade player Logic Plus

Australian Financial Review

Anthony Macdonald, Sarah Thompson and Kanika Sood

Jan 18, 2022

Information technology business EFEX, which targets IT needs of small and medium-sized enterprises (SME) in regional areas, has acquired Adelaide peer, Logic Plus. Logic Plus comes with around 1000 SME clients and 80 staff, providing IT, print, voice and data security services. It was founded by Jason Nagy in 2000, initially focusing on Adelaide medical practices before branching out, partly via acquisitions of its own. The acquisition makes South Australia EFEX’s biggest market, adding to the team of six it had in the state. It would expand both companies’ offering, EFEX said.

The sale price was not disclosed.

The deal come only weeks after Alceon Group’s private equity arm took a 50 per cent stake in EFEX. EFEX plans to run the Logic Plus business separate to its own for now, as it looks to preserve the smaller company’s client goodwill. Logic Plus’s chief executive Joanna Chronis would continue to lead the business but will now work alongside former AFL player Dean Brogan, who manages EFEX’s Adelaide office.

Both report to EFEX chief executive Nick Sheehan.

“Our recent investment from Alceon was secured based on our plans to expand and our impressive growth trajectory. This new acquisition delivers on that vision.” Mr. Sheehan said. “We see South Australia as a major source of talent for EFEX’s national roles, both within the acquired Logic Plus business, and as a regional talent pool.” he said.

Sheehan started EFEX in 2013, focusing on IT needs of SME businesses in regional areas. The company has since grown to 18 branches and 6000 customers. At the time of Alceon’s investment, EFEX was valued at 8 times annual EBITDA across the 2021 and 2022 financial years. Sheehan said the company wanted to triple its EBITDA by the 2026 financial year.