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.

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