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.
This article has been prepared and issued by Alceon Group Pty Limited (ABN 63 122 365 986, AFSL 345 692) (Alceon) and may contain general information. The information is intended for wholesale clients within the meaning of section 761G or 761GA of the Corporations act 2001 (Cth) (Corporations Act) and must not be made available to any persons that are “retail clients” for the purpose of the Corporations Act.
The information is current as at the date or preparation and is subject to change. The information does not consider the investment objectives, financial situation, or particular needs of any individual. Before making an investment decision, you should consider obtaining professional investment advice that considers your personal circumstances and read the relevant disclosure document to determine whether an investment is right for you.
Alceon does not guarantee repayment of capital or any particular rate of return. An investment may achieve a lower-than-expected return and investors risk losing some or all of their principal investment. Past performance is no indication of future performance. Alceon makes no representations or warranties, express or implied, as to the accuracy or completeness of the information it provides and to the maximum extent permitted by law, neither Alceon nor its directors, employees or agents accept any liability for any loss arising in relation to this information.