Fusion5 takes up private equity deal

Published on the 18/02/2021 | Written by Heather Wright


Rebecca Tohill_Fusion5

Waterman targeting tech sector growth…

IT services provider Fusion5 says it’s in ‘serious growth mode’ after gaining new majority owners.

Local private equity company Waterman Private Capital has taken a 55 percent stake in the company, in a move Rebecca Tohill (pictured), Fusion5 New Zealand/Australia chief executive, says will enable the company to accelerate its growth and add new offerings for customers.

“As a major shareholder in Fusion5, Waterman shares our enthusiasm for transforming our business into a significant provider of new initiatives, rich expertise, consultancy and game-changing innovation,” Tohill says.

It enables us to grow more quickly and take advantage of high growth opportunities.

“Waterman’s investment in Fusion5 strengthens our position in the market, and enables us to grow more quickly, take advantage of high growth opportunities, and provide an even more comprehensive range of solutions and services to our customers.”

Partner to companies including Microsoft, NetSuite, Oracle JD Edwards and IBM, Fusion5 offers digital transformation business solutions, applications, consulting services, cloud and managed services, along with support and training. It’s a member of the exclusive Microsoft Partner Club’s Inner Circle for Microsoft Business Applications for 2020/2021.

Waterman, meanwhile, is a Kiwi private company investor focused on local mid-market businesses. Its previous investments include My Food Bag – which expected to list on the NZX and ASX early next month – e-health provider HealthLink and several education and freight providers, including PBT. The company has several investments in the health arena, including TRG Imaging and Healthcare Holdings. It is reportedly expecting to gain up to NZ$93.9 million through My Food Bag’s IPO.

The deal, which is being dubbed a ‘partnership’ by Fusion5 and Waterman, is the first substantial investment in an IT company for Waterman.

It follows Fusion5’s acquisition late last year of business intelligence consultancy, Mindfull, in a move to extend its professional services capabilities. The deal saw it add a portfolio of new corporate performance management solutions to its lineup, along with a further 100 clients and 30 staff.

The Mindfull acquisition saw Fusion5’s revenue raised to $100 million and client numbers to more than 900, with headcount hitting 470 across nine offices across New Zealand and Australia.

Those acquisitions are expected to continue, with Tohill saying with Waterman on board, ‘Fusion5 will continue to grow both organically and through acquisition’.

“The market is presenting many opportunities across all our vendor partnerships and we are excited to take advantage of these,” she says.

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