EFEX’s acquisition of Business Machine Specialists
VCF Capital acted as financial advisor on the acquisition and debt raising for the acquisition of Business Machine Specialists.
January 2021
Company Overview
EFEX is a fast-growing, dynamic IT managed services provider servicing the SME market in both metropolitan and regional Australia. The business has an extensive network of locations, sales staff and service engineers in Adelaide, Sydney, Melbourne, Brisbane, Regional Queensland, Regional Victoria and Regional NSW (following the acquisitions of Think Office Technology and Cloud Copy Clock).
Founded in 2013, EFEX has a diverse customer base including c18,000 serviceable print devices on contract and another 6,800 high value managed IT endpoints and 9,300 low-end points.
EFEX’s founder has an ongoing desire to continue to grow through acquisition in regional Australia, with a strategic goal of growing from 18 branches to 50 branches by 2023.
Background
As part of VCF Capital’s ongoing engagement with EFEX, VCF Capital was engaged as exclusive financial advisor to EFEX to not only advise and manage the acquisition of Business Machine Specialists (BMS) but also manage the sourcing of acquisition financing via EFEX’s debt financing partner, Longreach Credit Investors (LCI).
Transaction Summary
On 31 January 2021, EFEX completed the acquisition of BMS, a well established managed services provider servicing customers along the NSW South Coast and South West Sydney from BMS’ headquarters in Wollongong.
The transaction added 30 skilled employees to EFEX’s IT implementation and support team and increase the scale of its regional NSW footprint.
Outcome
VCF Capital managed the acquisition process from end-to-end, including the term sheet negotiations, due diligence and transaction documentation process, as well as the associated refinancing of EFEX’s debt facilities with LCI to fund the transaction.
The transaction enabled the founders of BMS to join a complementary IT managed services business of scale with a strong cultural fit, and take up senior leadership roles within EFEX. The acquisition of BMS not only broadened EFEX’s managed IT capabilities in regional NSW, but also created further efficiencies across its existing network.