Nick Sheehan

efex, one of Australia’s leading providers of managed IT services, has secured its next phase of growth with Advent Partners. efex Founder Nick Sheehan will remain CEO under the new model, with Advent supporting the business to expand its regional footprint, develop new customer offerings in line with market demand, and continue efex’s growth through its strategic acquisition strategy.

Established in 2013, efex has expanded to become a national technology services specialist with more than 250 employees, a client book of 7,500 customers, and operations across 22 locations in Australia.

The outsourced ICT services market in Australia for small to medium businesses is estimated to be worth more than $3 billion, with managed IT services expected to grow at roughly eight per cent per annum, driven by cloud transition, increasing complexity of IT requirements and rising cybersecurity risk and compliance.

efex offers a full suite of IT services underpinned by an advanced professional services automation platform. Its services extend across, cloud, cyber, unified communications, modern workplace, business resilience, managed document solutions and hardware provisioning.

efex has championed a ‘buy and build’ strategy, acquiring 11 sophisticated, client-orientated, and innovative managed service providers. It most recently acquired Datcom, a cybersecurity services leader, and Medihost Solutions, an IT solutions provider for medical services and healthcare practitioners. efex has also built a leading position in regional Australia, providing equal access to both best-in-market technology solutions and employment opportunities beyond metropolitan areas. Its customer-base sits across professional services, education, healthcare, mining and local government.

Advent Partners’ championship of Nick Sheehan’s leadership will see the company continue to pursue its ‘buy and build’ approach. efex remains focused on identifying attractive regional and metro managed services providers across Australia and New Zealand that fit within its core focus, to accelerate its expansion of existing strengths in mid-market and enterprise.

A key attraction for Advent Partners was efex’s automation platform which enhances scalability, integration efficiency, and identification of additional customer requirements and tailoring of efex solutions.

Nick Sheehan, Founder and CEO at efex said: “I am pleased to announce this next step for efex, an exciting opportunity for the business and a signal of more good things to come for the thousands of customers we service across Australia. Our team has created industry-leading solutions for our clients and a great home for other businesses looking to consolidate as the next step in their future.”

“We were attracted by Advent’s collaborative approach to business, which will undoubtably drive productivity and deliver enhanced value for our customers and our people. We have significant ambitions, and by adding one of Australia’s most experienced investment managers to our corner, we are well-positioned to build on our success,” said Mr Sheehan.

Having operated for more than 40 years through eight funds, Advent Partners is one of Australia’s longest-standing investment managers. The business currently has more than A$1 billion in funds under management and a track record of investing in innovative, technology businesses and supporting Founder-led organisations including investments in Compass Education, Flintfox International, MedTech, RMS Cloud and Social Pinpoint.

Brad Lynch, Partner at Advent Partners said: “efex is a unique business, combining national scale with a genuine local connection. Its commitment to customer service and its culture as a great place to work position efex as an ideal partner to drive continued consolidation within the managed IT services sector”.

Mark Jago, Partner at Advent Partners added: “As efex continues to scale, we are excited to support Nick and the management team through our collaborative approach to help unlock new potential, and subsequently create more value for customers across the nation.”

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Nick Sheehan

efex, a leading provider of managed IT services, has acquired full-service managed cybersecurity services provider Datcom. The deal is efex’s fifth acquisition in the past 18 months, further cementing its aggressive and targeted growth strategy.

Established in 1997 by Jay Sayed, Datcom is a cybersecurity services leader and trusted partner of many esteemed Australian organisations. As the rate of cybersecurity incidents increases, investing in innovative solutions that deliver protection, resilience and continuity for organisations is essential.

During its 25-year history, Datcom has helped organisations navigate the complexities of today’s evolving digital landscape, providing cybersecurity solutions that are tailored to meet specific needs. This includes delivering strategic guidance, bespoke infrastructure support, and supporting the ongoing management of operations.

Today’s acquisition expands efex’s capabilities to support high performing, mid-market businesses in capital cities and rural and regional locations. Honing the expertise of Datcom, efex will deliver a more extensive managed services offering to Australian and New Zealand clients with specialisation in professional services, education, healthcare, mining & local government.

For more than 10 years, efex has identified and combined sophisticated, innovative, managed service providers across Australia. Led by Founder and CEO Nick Sheehan, this focus has seen efex grow into a national technology services specialist with a client book of more than 7500 customers, operating from 22 locations across Australia and New Zealand.

Mr Nick Sheehan said: “Strengthening efex’s cybersecurity offering has been a priority for efex in the wake of increased cyber breaches and breach attempts. This is not surprising as the most recent data from the Office of the Australian Information Commissioner (OAIC) shows there were more than 500 notifiable breaches for Australian businesses in a six month period^[1].

“efex clients choose us to ensure their systems and platforms are market-leading and can stand up to increasingly sophisticated and relentless cyber breach attacks. Acquiring Datcom, a recognised leading provider, ensures we satisfy that priority for all our clients.

“The Datcom team are experts in this highly complex and continuously evolving landscape, which is increasingly difficult for businesses to navigate. Our integration will deliver more sophisticated cybersecurity support for our clients across the Trans-Tasman, leveraging advanced automation and in-depth threat analysis to help our clients identify vulnerabilities and build more resilient systems,” said Mr Sheehan.

In 2024 alone, efex made four acquisitions, including Adelaide based Aish IT, Canberra based Wyscom, Geelong based Worldmark Corporate Consulting, and medical IT solutions business Medihost. This rapid expansion demonstrates efex’s commitment to its aggressive and targeted growth strategy, strengthening its geographical presence in new states and territories while expanding its managed service offering.

In the coming months, Datcom and efex will prioritise the seamless integration of both businesses. Datcom will operate under the efex brand and will retain its existing team of specialists, led by Rube Sayed.

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Notes:
[1] The OIAC received 500 Notifiable Data Breaches (an increase of 34%, and finalised 561, a 38% increase). 81% of NDBs were finalised within a KPI target of 80% in 60 days. Source.

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