Deal closed: April 2013, January 2014, April 2014
Oasis M&A mandate: buy-side
Sectors: Technology, Business Services
Sub-sectors: Cloud-based Managed Services, Managed print services
Background and motivation
Viatek were a managed print services company seeking to enter the technology managed services sector. They aimed to grow their service offering, reach new industries and increase geographical reach as part of an ambitious expansion and diversification strategy.
Viatek’s objective was to build a sustainable, cloud-based business across market segments including enterprise, government and small business.
Viatek approached Oasis M&A, seeking assistance to research and identify acquisition targets then assist with negotiation and due diligence phases.
Many managed services firms are very small and not well known, so extensive research was conducted to ensure a comprehensive target list was accumulated.
Where opportunities were identified, vendors often had high expectations regarding price requiring careful negotiating to come to an agreement. Our approach to this was to structure deals around future earnings, facilitating a price satisfactory to the vendor while offsetting risk to the client.
Over a period of 13 months from April 2013 to April 2014, Viatek secured 3 acquisitions with the help of Oasis M&A: DNS IT, CN Group and Integrating Technologies. Each acquisition helped Viatek achieve growth objectives, expanding in geographical reach, services offering and client base into new sectors.
“Customers are demanding access to Cloud-based applications and services, and don’t necessarily want to use two or three different providers. It made sense for us to look for complementary acquisitions to help us grow and expand our business in order to satisfy that demand.”
Viatek now provides IT print management services, business process automation, communications services and managed IT services. Viatek had 300 staff across 20 locally managed offices around regional centres in Victoria and NSW. They merged all acquisitions into the Viatek brand.