Nuago bought by nation’s largest systems integration provider Brennan IT

One of SA’s fastest growing technology services providers has been acquired by a major national player.

Nuago shareholders Dave Brown, Ben Gordon, Brendon O’Rourke and Mark Wiskar with employees Edgar Croe, Antonietta Silvestri and shareholders Connor O’Rourke and Ben Scholefield.

IT services and consulting firm Nuago has been acquired by the country’s largest systems integration provider Brennan IT.

Established in 2016 by a group of ex-Datacom employees, Nuago has rapidly grown its workforce to 60 staff, with annual revenues reaching more than $25m.

All Nuago employees, including four of the five founders who have remained with company – Mick O’Rourke, his sons Connor and Brendon, and Ben Scholefield – have made the transition to Sydney-based Brennan, which was established by tech entrepreneur Dave Stevens in 1997.

Mr (Connor) O’Rourke said that while Nuago’s ownership group had not been looking to sell the business, Brennan had emerged as the perfect partner to take the company forward.

“I think it came up for us earlier than we had anticipated,” he said.

“We weren’t on the market trying to sell the business – in fact, we’ve just come off our best year. But we had always joked, since day one, that if we ever did get acquired, wouldn’t it be great to be purchased by Brennan.

“They’re the number one MSP (managed service provider) in the country and we had a lot of respect for them and have followed them over the years.

“There’s a lot of PE money and M&As going on and they end up messing up the business that you’ve built. For us it was critical to be able to leave a legacy because we’re really proud of what we have built and we want to see that go on to its next heights.”

With a focus on cloud strategy, security and managed services, Nuago was established to fill a technology gap in South Australia’s SME market.

It is Brennan’s fourth acquisition in just under three years, having previously snapped up ASX-listed MOQ for $23m and Clade Solutions in 2022, and Forsythes Technology in 2021.

It also marks Brennan’s first major foray into the South Australian market. The company says it has “further strategic acquisitions earmarked for the near future”.

“For customers, this acquisition unlocks access to an even deeper and richer pool of skills and talent,” Mr Stevens said.

“For Brennan, our expanded national footprint opens an exciting chapter and fresh opportunities. And for the wider market, our ongoing investment in Australian-owned and operated technology specialists underscores our intent and ambition to grow further.”

The financial terms of the deal have not been disclosed, but Mr O’Rourke said Brennan intended to grow the business and its workforce in South Australia.

He said government investment and focus on developing a local start-up and technology ecosystem in Adelaide had supported Nuago’s rapid growth in recent years, to a point where it’s local team would now benefit from being part of one of the country’s major industry players.

“Some people might think it’s another one lost to the east coast, but I don’t think it’s that at all,” he said.

“In order to do what’s right for your business, you need to continue to do what’s right for the organism.

“And when you get to be in the biggest in the mid market, you find yourself competing with the biggest in the yard. And that requires a new level of maturity, systems, investment, etc. So it made sense and it was the right thing, we think, for everybody involved.”