Little known 21-year-old IT systems integrator Insitec is gearing up to find a significant equity partner to fund its ambitious growth aspirations, with plans to be a $400 million revenue business within a few years.to run the process, was founded in the aftermath of the dot com crash in 2001 and primarily services the defence industry.
“But then we started thinking about what Australian industry needed to do to meet the challenge … and what was missing is the middle of defence. There’s a great collection of 20 small, sub-scale providers, but no one defence could give a 200- to 300-person project to.“So in 2018, we decided to give this a go, and to raise capital and do the strategic acquisitions that would give us some scale. We don’t build or maintain ships, but every one of those assets is now a digital platform too.
The Network was advised by Origin Corporate Finance, while VCF Capital Partners also advised Insitec on the deal and associated financing.The acquisition is being funded by a $26.5 million debt package, secured with New York-based private credit giant MuzinichThe acquisition was motivated by one of the biggest barriers to growth for tech companies servicing the defence sector – talent.
“The Network give us access to skilled people who are currently inside and outside of the sector and, in turn, we give them access to dynamic new career opportunities in the defence sector.” It also recently won a $43.5 million contract to provide services to the defence department’s Chief Information Officer Group and Service Management Branch.