Advent Partners Takes Majority Stake in Efex
▼ Summary
– efex has secured investment from Advent Partners to support its next growth phase while founder Nick Sheehan remains CEO.
– The company is a national Australian managed IT services provider with 7,500 customers, 250 employees, and operations across 22 locations.
– efex pursues a ‘buy and build’ strategy, having acquired 11 managed service providers including recent cybersecurity and healthcare IT acquisitions.
– Advent Partners was attracted by efex’s automation platform and will support expansion of regional footprint and strategic acquisitions in Australia and New Zealand.
– The Australian managed IT services market is valued over $3 billion with 8% annual growth driven by cloud transition and cybersecurity needs.
A significant new chapter begins for efex, a premier Australian managed IT services provider, as Advent Partners acquires a majority stake in the company. This strategic investment is designed to fuel the next wave of growth, enabling efex to broaden its regional presence, introduce new customer offerings aligned with market needs, and persist with its successful strategic acquisition model. Founder Nick Sheehan will continue to lead the company as CEO, ensuring leadership continuity.
Since its establishment in 2013, efex has grown into a national technology specialist employing over 250 staff. The company serves a substantial client base of 7,500 customers from 22 locations across Australia. This expansion occurs within a thriving market; the outsourced ICT services sector for small and medium businesses in Australia is valued at more than $3 billion. This market is projected to grow at approximately eight percent annually, propelled by the ongoing transition to cloud-based systems, increasingly complex IT demands, and heightened concerns over cybersecurity and compliance.
efex delivers a comprehensive suite of IT services, all supported by a sophisticated professional services automation platform. Their offerings span cloud solutions, cybersecurity, unified communications, modern workplace technologies, business resilience planning, managed document solutions, and hardware provisioning. A cornerstone of the company’s success has been its ‘buy and build’ strategy, which has involved the acquisition of eleven client-focused and innovative managed service providers. Recent additions to the efex portfolio include Datcom, a leader in cybersecurity services, and Medihost Solutions, an IT provider for the healthcare sector. The company has also established a leading position in regional Australia, ensuring businesses outside metropolitan hubs have equal access to top-tier technology and employment opportunities. Its diverse customer base spans professional services, education, healthcare, mining, and local government.
Under Advent Partners’ ownership, Nick Sheehan’s leadership and the proven ‘buy and build’ approach will continue. efex remains focused on identifying attractive managed services providers across both regional and metropolitan areas in Australia and New Zealand that complement its core strengths, thereby accelerating its expansion within the mid-market and enterprise segments. A key factor that attracted Advent Partners was efex’s automation platform, which significantly enhances the business’s scalability, improves integration efficiency, and helps identify additional customer needs for tailored solution development.
Nick Sheehan expressed his enthusiasm for the partnership, stating, “This is a thrilling next step for efex, signaling more positive developments for our thousands of customers nationwide. Our team has built industry-leading solutions and a supportive environment for other businesses considering consolidation. We were drawn to Advent’s collaborative business style, which will undoubtedly boost productivity and deliver greater value for our customers and our people. With ambitious goals, partnering with one of Australia’s most experienced investment managers perfectly positions us to build upon our achievements.”
With over four decades of operation across eight funds, Advent Partners is one of Australia’s longest-standing investment managers. The firm currently manages more than A$1 billion and has a strong track record of investing in innovative technology businesses and supporting founder-led organizations, including Compass Education, Flintfox International, MedTech, RMS Cloud, and Social Pinpoint.
Brad Lynch, a Partner at Advent Partners, commented, “efex is a distinctive business that successfully combines national scale with authentic local connections. Its unwavering commitment to customer service and its positive workplace culture make efex an ideal partner to lead continued consolidation in the managed IT services industry.”
Another Partner, Mark Jago, added, “As efex continues its growth trajectory, we are excited to support Nick and his management team. Our collaborative approach will help unlock new potential and, in turn, create more value for customers throughout the country.”
(Source: ITWire Australia)
