Tecala Receives $18m Investment
Leading technology service provider Tecala Group today announced a strategic partnership with business investment specialist Armitage Associates.
The partnership, which involves an $18-million investment in Tecala, will support a planned national growth strategy and extend the company’s ability to serve clients across Australia’s mid-market sector. Part of the strategy will include expanding the businesses presence in Brisbane, Adelaide and Perth, as well as significantly investing in people to meet the growing demands of Tecala’s client base.
Tecala’s Managing Director, Pieter DeGunst, said “the partnership comes at an important time for the company, as it works to expand its operations and grow its portfolio of offerings for clients.
“During the past 15 years, Tecala has positioned itself as a leading provider of consulting, managed IT services, and cloud solutions. This new partnership with Armitage will allow us to further scale the business nationally and increase our investment into emerging technology areas to prepare our clients for the future.”
DeGunst said the investment by Armitage, which involves the company taking a significant stake in Tecala, was the result of a detailed, 18-month review of a range of potential business partners.
“We did not want to follow the traditional private equity route, where investors are looking to bolt together businesses and make a quick buck,” he said. “Rather, we were looking for a company who understood our growth strategy and were keen to become involved as a long-term partner.”
“The existing Tecala board and leadership team remains in place and will continue to have full oversight of all operations. Mark De Ambrosis joins the board, and along with the dedicated Armitage team, brings decades of experience in scaling companies such as Tecala, as we prepare for our next phase of growth.
Industry veteran Steve Nola also joins the Tecala board as Chairman, to further provide advice and guidance to help the Tecala team scale and lead the market. With over 30 years in the industry, he brings with him a wealth of valuable market knowledge and experience.”
Strong business relationship
Mark De Ambrosis from Armitage Associates said the new partnership was strategic for both companies, as Tecala represented the type of organisation with which the investment firm was keen to work.
“We had been examining the managed services market for some time and could see the potential for strong future growth across Australia,” said De Ambrosis. “We could clearly see that Tecala had already established a strong footprint and had a clear plan for ongoing growth.”
DeGunst said the relationship would be further strengthened by the fact that the two companies shared a similar business culture, with focus on both continuing to develop the world-class team of people at Tecala, as well as making sure the service offerings closely match the requirements of customers to meet constantly evolving demands in the business environment.
“Our focus will now be on growing our portfolio of services and making them available to a wider range of businesses around the country,” he said. “Working with Armitage, we will have a network of people with the experience to help us achieve our goals.”
DeGunst said a portion of the new funding would be used to pursue strategic, targeted acquisitions to further grow Tecala’s service offerings. “We are always on the lookout for areas where we can acquire new capabilities and this funding will enable us to take advantage of new opportunities as they arise.”
About Tecala
As an end-to-end Managed Services Provider (MSP), Tecala supports mid-market clients across Australia. Rooted in a consulting and advisory background, their methodology is built on understanding their clients’ business objectives first, enabling them to provide technology solutions that deliver brilliant outcomes. Taking a strategic approach, Tecala implements and optimises a range of services including, managed cloud, IT support services, communications services, cyber security and intelligent automation, as well as a comprehensive, as-a-Service practice that includes infrastructure, data protection and disaster recovery.
For further information please visit: tecala.com.au
About Armitage Associates
Armitage Associates is a growth equity firm founded with the support of leading Australian families. Our investments focus on providing capital and management support to small and medium sized businesses, often family-held, across Australia and New Zealand. Armitage looks to partner with management to assist in growing their company providing equity capital for growth. Armitage is fortunate to have long-term patient capital and adopts a long-term investment approach.
