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Case Study: Fujitsu aquisition of MFA

Fujitsu acquire Canberra-based cybersecurity and management consulting business

Overview

Fujitsu aquisition of MF & Associates (MFA)

Fujitsu is a leading multinational ICT equipment and services corporation. Since 2021, Fujitsu has been making a number of acquisitions in the IT services sector to diversify its service offering and expand its delivery capabilities in Australia and New Zealand. As part of this strategy, Fujitsu developed Uvance, seeking to “help customers grow their businesses and solve societal issues”.

To effect this strategy, Fujitsu identified MFA as an ideal target to boost its DX management consulting capabilities and maximise existing cybersecurity investments while still maintaining alignment with culture.

Nash Advisory was engaged in April 2023 to assist Fujitsu in executing the transaction.

Industry

IT and digital services

Key outcomes

  • Fujitsu successfully acquired Canberra-based management, technology and cybersecurity consultancy MF & Associates
  • Nash project managed the due diligence process involving over 50 internal and external stakeholders across Australia and Japan
  • Nash conducted detailed analysis to give Fujitsu confidence in the financial performance and valuation of the business

The situation

Nash Advisory was engaged in April 2023 to assist Fujitsu in executing the transaction.

How we got results

1

Maintained consistent internal communication

Fujitsu’s due diligence team encompassed over 50 individuals between internal workstreams and external advisers. Nash Advisory took on the project management role of the process, conducting consistent all hands / targeted meetings with all involved parties to ensure deadlines were met and the process operated in an efficient manner.

2

Liaised with international stakeholders

Given Fujitsu’s multinational status, a range of international stakeholders were required to be involved in the process. Nash Advisory used its previous experience with Fujitsu to anticipate internal gates to completing the acquisition and assist the APAC team in appropriately communicating the opportunity and ensuring group alignment on the transaction.

3

Worked to build comfort on working capital and net debt adjustments

Nash Advisory worked closely with Mazars and the Fujitsu team to model out the working capital profile of the business along with the profit & loss. Regular updates and forecasts were shared with Fujitsu’s APAC and international stakeholders to keep them well-informed about the adjustment process and instil confidence in proceeding with the transaction.

4

Developed an innovative pricing method

Nash Advisory proposed a particular up-front / deferred payment mechanism for the transaction. This was crafted in a way to ensure that the vendors were satisfied with the outcome of the deal, whilst still protecting Fujitsu from risks that it deemed to be key in the process.

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“We were pleased to have been able to assist Fujitsu with structuring and executing this strategic transaction. This transaction represents Nash Advisory’s fourth completed deal involving Fujitsu, including third as a buy-side advisor. We look forward to continuing to assist Fujitsu in pursuing its future strategic buy-side M&A programme across Australia and Asia”.
Ed Chan
Ed Chan
Director

The people involved

Timeline of the sale

April 2023

Nash Advisory was engaged by Fujitsu to advise on the acquisition of MF & Associates.

September 2023

Signing of transaction documents.

October 2023

Completion of transaction.

Note

Due to sensitive nature of this transaction and confidentiality considerations, the detailed timeline for this transaction is unable to be disclosed.

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