IT & Application Development Firm Acquired by Telstra for more than 2x multiple of money.

Readify, a leading IT services company specialising in application development, was based in Melbourne with several offices spread across Australia, employing 150+ staff. Fortitude first invested in the business in August 2013 and again in June 2014 after recognising an opportunity for substantial growth in the fragmented Australian IT services sector.


Our results

Readify was sold to Telstra in 2016 to further their growing portfolio of IT service businesses, generating an impressive internal rate of return (IRR) of almost 35% p.a. in three years.

8%

COMPOUND ANNUAL GROWTH RATE ON EBITDA

34.9% p.a.

INTERNAL RATE OF RETURN IN THREE YEARS

2.1x

MULTIPLE OF MONEY

CHALLENGES OVERCAME

  • Identifying and engaging with approximately 60 “Priority 1” merger/acquisition targets, ultimately making two strategic acquisitions/investments

  • Continuing growth with the steady generation of cash

  • Investing significantly in the talent of the business by bringing on board a CFO, new developers, modernising the sales staff, and bolstering second-tier management.

 

Investment reaso

ning

Readify provided an opportunity to leverage a robust platform and execute a buy-and-build strategy. The combination of industry-leading development staff, aligned senior management, and a business model offering low capital requirements and high yields made it a compelling investment opportunity with multiple exit paths, including the potential for an IPO.

 
 
 

GROWING IN A FRAGMENTED SECTOR

We successfully executed a buy-and-build strategy, resulting in two strategic acquisitions/investments.

 
 

STRONG & ALIGNED LEADERSHIP

With a new CFO, second-tier management staff, and CEO Graeme Strange retaining his 25% ownership in the business, we had a balance of industry expertise and direction for growth.

 
 
 

UNIVERSALLY RECOGNISED STAFF

Introducing new developer talent to the team led to global recognition as industry leaders, awarded Microsoft Partner of the Year in Australia in 2013 & 2015.