Atturra to acquire Blue Connections IT for up to $25.5M in managed services boost

Atturra is set to acquire Blue Connections IT for upwards of $25 million in order to bolster its managed services offering.

Through its subsidiary Cirrus Network Holdings, Atturra is putting up $18 million in cash up front as part of the deal, with an additional $7.5 million in cash or shares is also on offer if Blue Connections makes audited earnings before interest and tax (EBIT) targets for the 2026 and 2027 financial years and retains key staff. Integration costs have been budgeted at $500,000.

The services provider’s CEO, Stephen Kowal, said the proposed acquisition will “significantly enhance Atturra’s credentials as a leading provider in managed services”.

“It will strengthen Atturra’s service capabilities, while expanding its client base and portfolio of offerings. Notably, Blue Connections’ client roster has minimal overlap with Atturra’s, providing an opportunity to broaden Atturra’s revenue streams and market reach.

“The proposed acquisition aligns with Atturra’s strategic focus on its commitment to scaling its managed services capabilities. It will also establish a key operational hub for the business in Victoria, supporting continued national expansion.”

The acquisition is expected to be completed on or around 31 August. If it is wrapped up by 31 August, Atturra said Blue Connections is expected to contribute more than $2.5 million in earnings before interest, tax, depreciation and amortisation (EBITDA) during FY26 and over $3.5 million in EBITDA during FY27.

Founded in 1997 and based in Melbourne, Blue Connections offers IT procurement services across mid-market, enterprise and government sectors, covering end user compute, device lifecycle management, modern workplace, device as a service, bid management and warehousing.

It also operates an Australian-based 24/7 service desk to support customers, offering level 1, 2 and 3 engineers.

Earlier this month when Atturra announced its financial results for FY25, Kowal said that the financial year ahead would include an expansion of its portfolio, “particularly in managed services”, among other areas.

Meanwhile, in January, Blue Connections achieved ISO/IEC 27001:2022 certification for information security management systems (ISMS)  .