Alceon PE takes stake in IT managed services group EFEX
Australian Financial Review
Anthony Macdonald, Yolanda Redrup and Kankia Sood
Dec 23, 2021
Alceon’s busy private equity team is set to sign its fourth investment for the calendar year, this time in IT managed services. Alceon PE is closing in on a 50 per cent stake in fast-growing EFEX, which is focused on providing managed IT services to small to medium-sized enterprises in regional areas. Alceon PE will invest in the business alongside founder and CEO Nick Sheehan, who started the business in 2013 and has grown it to 18 branches and more than 4000 business customers. The deal values EFEX at $54.4 million, or 8-times average annual EBITDA across the 2021 and 2022 financial years. It is expected to complete in coming days. Alceon PE co-head Zac Midalia said EFEX had quickly built a valuable footprint.
“EFEX is very well-placed with a strong and growing customer base, an irreplaceable regional footprint and strong built-in growth potential for its high value managed IT services offering,” he said in a statement to Street Talk on Wednesday night.
EFEX boss Sheehan said the business could triple earnings in the medium term.
“Together with Alceon PE’s support, EFEX can triple EBITDA by FY 2026 through a combination of growth levers including ongoing conversion of print customers to managed IT services; development of an internal warehouse facility, new customer acquisitions and further M&A,” he said.
It’s the fourth deal for Alceon PE since Midalia and co-head David Wilshire took over at the beginning of the year. Each deal is funded via Alceon’s network of high net worth investors and family offices.
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.