Telstra Purple seeks an industrial automation alliance
23.3.2022InterFinancial would like to congratulate long-term client Alliance Automation on their successful sale to Telstra Purple.
Alliance, one of Australia’s largest independent providers of Industry 4.0 industrial automation solutions and control systems, was an excellent fit for Telstra’s strategy to expand its digital transformation services, industrial automation capabilities, digital twin, smart spaces and OT cyber security offerings.
Founded in 2010, Alliance is headquartered in Brisbane with nine offices around Australia and more than 250 engineers and consultants.
InterFinancial’s relationship with Alliance started in 2019 when IFL advised on the buyside for listed energy provider to commercial clients, ERM Power Limited. At the time, ERM was growing it’s Energy Solutions capability and saw Alliance’s capability in automation and control as providing ERM Power greater ability to design and implement demand response strategies for clients. At the time, ERM acquired 50% of Alliance with the remaining stake held by founder, Matt Griffiths.
As Alliance continued to grow organically throughout Australia, InterFinancial then advised Alliance Automation in its bolt-on acquisition of Adelaide-based APC Integration to expand its geographic coverage and customer base in South Australia.
Following Shell’s acquisition of ERM Power, it was determined that an international energy trading company was not the logical future owner of 100% of Alliance Automation, and hence were looking to exit their investment and properly succession plan for Founder, Managing Director, and 50% shareholder, Matt Griffiths. InterFinancial was engaged to advise on a sale process of Alliance on behalf of the two owners.
InterFinancial ran an international process, fielding interest from private equity, engineering, and professional services companies, however it was in the technology consulting sector that saw the most strategic value in Alliance, with large growth currently being seen in digital transformation and the automation of enterprise operations – also known as “Industry 4.0”.
The ability to provide top-to-bottom solutions for clients across both operational technology (OT) and traditional information technology (IT) was seen as a major driver for the transaction.
Telstra Purple emerged with an offer which suited the needs of both shareholders and resulted in an outstanding return on ERM Power’s initial investment.
InterFinancial represented Alliance throughout the process, from helping the shareholders to understand the valuation of the business to preparing the sales material, approaching potential investors, modelling various transaction scenarios, negotiating the term sheet, managing the due diligence process, and overseeing final contract negotiations.
“I’ve been extremely happy with the work done with IFL over the last three years. After originally encountering them on the other side of the table when ERM Power acquired 50% of Alliance, they have been nothing but an extremely diligent, ethical, and creative partner. The experience with them on the other side of the negotiation table was the reason why I opted to have them advise in the sale of Alliance. Whether it was presenting the Alliance story to investors, driving negotiations, or assessing the offers of the various interested parties, we could always rely on Mike and Sharon to provide clear and frank advice and represent Shell and my best interests.“
– Matt Griffiths, Founder & Managing Director – Alliance Automation
