Corporate advisors to the digital economy

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Latimer Partners has advised on more IT services and communications transactions than any other independent advisory firm in Australia. We work with growth-stage businesses across managed and professional services, digital transformation, cybersecurity, cloud infrastructure, and telecommunications. We advise founders, boards and private equity owners on strategic positioning, bolt-on acquisitions, and high‑value exits. Our clients typically have revenue between $20 million and $200 million, and we bring deep sector knowledge and direct relationships with the most active buyers to every engagement.

The IT Services & Communications M&A Landscape

Australia's IT services and communications sector is in a period of structural transformation. The boundaries between traditional sub-sectors are blurring, buyer appetite is strong but increasingly selective, and the businesses that position themselves well are achieving exceptional outcomes.

The Managed Services Transition

The sector continues its fundamental shift from project-based delivery to managed services and recurring revenue models. Businesses that have successfully made this transition, building contractual, sticky customer relationships around infrastructure management, security operations, and cloud, are being rewarded with materially higher valuations and stronger buyer interest.

Convergence Across Sub-Sectors

The lines between MSPs, cybersecurity firms, cloud providers, and communications businesses are increasingly blurred. Clients want integrated solutions, and acquirers are building platforms that span multiple capabilities. This convergence is creating new combinations and new M&A opportunities that didn't exist five years ago.

AI Is Reshaping Delivery Models

AI is simultaneously the sector's largest growth opportunity and its most disruptive force. Firms building genuine AI delivery capability across data readiness, agent orchestration, and governance are seeing strong client demand and premium strategic interest. Those that remain generalist face margin pressure as automation compresses traditional billable hours.

PE Capital Driving Consolidation

Private equity has identified Australian IT services as one of the most attractive buy-and-build sectors in the digital economy. Multiple sponsors are actively building platforms, acquiring MSPs, cybersecurity, cloud, and ERP businesses to create scaled, diversified groups. Entry thresholds have shifted down, and the volume of PE-backed acquisitions continues to accelerate.

Global Acquirers Building Local Scale

Global systems integrators are acquiring scaled Australian platforms to build local capability in high-growth practice areas. International IT services firms are equally active, driven by client base alignment and hyperscaler partnerships. This international appetite adds a competitive dimension that benefits well-prepared sellers.

Specialisation Over Scale

The market is increasingly rewarding depth over breadth. Specialist firms with genuine expertise in areas like cybersecurity, cloud-native infrastructure, or data and analytics are commanding premium multiples, even at relatively modest scale. Generalist IT services businesses face a tougher environment as buyers prioritise capability acquisition.

“The M&A market for IT services and communications is active, but increasingly bifurcated. Buyers are paying premium multiples for businesses with deep specialist capability and/or strong recurring revenue platforms — and discounting everything else. Positioning matters more than timing.”

Valuation Insights

What Drives Valuation

Understanding what acquirers pay premiums for, and why, is central to how we advise clients on timing, positioning, and process design.

Recurring revenue quality:

A high proportion of managed services revenue is the most consistent predictor of valuation premium. Acquirers discount project-heavy work and reward contractual, sticky customer relationships with predictable cashflows.

Practice specialisation:

Deep expertise in cyber, cloud, data, or AI commands material premiums over generalist peers. Specialist positioning signals defensibility and pricing power.

Scale thresholds:

Services revenues above $50m and EBITDA above $10m unlock a materially larger acquirer universe, including global SIs and local and international PE sponsors who require minimum platform scale.

Acquirer Landscape

Who Acquires IT Services Businesses

Global Systems Integrators

Accenture, Infosys, and Capgemini are among the global systems integrators actively building local capability through Australian acquisitions, targeting scaled platforms with domain depth, enterprise client relationships, and specialist capability in high-growth practice areas such as cybersecurity, AI, and cloud.

International IT Services Firms

Insight, 11:11 Systems, and Evergreen are among the international firms actively acquiring in Australia, driven by client base alignment, hyperscaler partnerships, and the quality of local talent.

PE-Backed Platforms

Private equity sponsors take a thematic approach to IT services, targeting high-growth segments such as cybersecurity, cloud, and managed services. They build scale through a combination of organic investment and bolt-on acquisitions, creating platforms with strong recurring revenue and deep specialist capability.

ASX-Listed Acquirers

Listed Australian technology companies continue to be active acquirers across both IT services and communications. In IT services, Atturra has used acquisitions to build scale and capabilities across a wide range of practices, while InfoTrust is pursuing a focused cybersecurity roll-up strategy. In communications, Superloop and Aussie Broadband are acquiring to extend network reach, strengthen capabilities, and add scale in strategically important market segments. These acquirers often move quickly and can offer compelling combinations of cash and scrip.

Our Edge

Why Latimer Partners

Unlike generalist corporate advisors, Latimer Partners focuses exclusively on the digital economy with a particular focus on the IT services and communications sector. This specialisation means deeper buyer relationships, more relevant transaction experience, and better outcomes for clients.

As the leading advisor to the IT services and communications sector in Australia, our consistent deal flow gives us direct, ongoing insight into acquirer strategies, valuation expectations, and competitive dynamics. Through our partnership with Arma Partners, one of the world's leading technology M&A advisors, we also connect Australian businesses to the international buyer and investor universe across Europe and North America. This combination of local depth and global reach informs how we position every engagement for maximum competitive interest.

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IT & communications transactions

34%

of our deals are cross-border transactions

100%

Referenceable track record

50%+

Deals for repeat clients or counterparties

Track Record