Investment firm Advent International has secured a majority stake in the Australian IT managed services company Efex, acquiring it from Alceon Private Equity. This move marks Advent’s entry into a sector known for its stability and growth potential. The deal, which is reported to value Efex between $100 million and $200 million, reflects significant returns for Alceon, which invested in the company in December 2021 at an enterprise valuation of $54.4 million.
Under the leadership of partner Brad Lynch, Advent gained exclusivity for the purchase, taking over from Alceon, which has expanded Efex nationally through seven strategic acquisitions since its initial investment. Zac Midalia of Alceon has been pivotal in steering this investment process. Notably, Nick Sheehan, who founded Efex in 2013, will remain involved as both a shareholder and the company’s CEO.
Efex’s Strategic Growth and Market Position
Efex has experienced rapid growth, expanding its operations across 22 locations in Australia. The company serves approximately 7,500 clients, including small-to-medium enterprises and government entities. Its services encompass IT support, data management, cybersecurity, network monitoring, and procurement solutions.
The company’s gross turnover reached around $109 million in the financial year 2024, driven by a series of well-timed acquisitions. These included the Sydney-based cybersecurity firm Datacom in May, as well as other companies like healthcare specialist Medihost Solutions and Wyscom from Canberra.
The investment landscape in the IT services sector has drawn attention due to the increasing reliance on technology solutions across industries. Advent’s acquisition of Efex underscores a growing trend where established firms seek stable investments in technology-driven environments.
As the digital landscape evolves, companies like Efex are well-positioned to capitalize on emerging needs in IT services, making this acquisition a potentially strategic move for Advent. With a history of successful investments, Advent appears poised to support Efex’s continued expansion and innovation in the IT services market.
