Atturra strengthens SAP expertise with DalRae acquisition

Publicly listed managed service provider Atturra will acquire Brisbane-based SAP premiere partner DalRae Solutions.

DalRae specialises in SAP’s business technology platform, S/4 HANA and SAP’s Clean Core methodologies as well as offering the full suite of SAP Cloud and case management solutions. 

According to Atturra, it has a significant SAP client base along with a range of complementary capabilities that include infrastructure managed services, OpenText ECM services, data and integration services and change and adoption services specific to SAP.

As the inaugural recipient of SAP’s Business AI Award and a multiple-time SAP Industry Disruptor Award winner, DalRae is recognised for delivering innovative, human-centered, and AI-enabled solutions that help organisations modernise core operations.  

A member of the global SAP AppHaus Network, DalRae supports government, utilities, and complex mid-market clients with a clean core approach and a focus on business impact.

“As a technology service provider with a strong track record of targeted and disciplined M&A, Atturra has consistently signalled its intention to establish a meaningful footprint in the SAP consulting and implementation space,” Atturra CEO Stephen Kowal said. 

“The proposed DalRae acquisition marks an important step in Atturra’s long-standing aspiration to expand meaningfully into the SAP ecosystem. 

“By combining our national client footprint with the deep SAP expertise of the DalRae team, we are intending to significantly enhance our ability to deliver end-to-end enterprise solutions for our clients.”

The upfront consideration is $4.8 million in cash, with earn-out/post-completion consideration of up to $15.2m in cash subject to DalRae achieving performance hurdles based on audited EBITDA targets and key employee retention targets for CY25, CY26 and CY27. The purchase price, including upfront and deferred consideration, is based on a multiple of 6.15x forecast EBITDA.

The acquisition is expected to be EPS accretive in FY26 and is expected to be completed on 30 June subject to conditions.

In a previous interview with ARN, Kowal discussed intentions to expand its enterprise software business in SAP and ServiceNow.

Atturra has snapped up Exent, Plan B, Chrome Consulting, ComActivity and expanded into the US with Boomi specialist, Kitepipe.