Australia’s Quadrant PE to acquire enterprise services unit of Arq Group

FILE PHOTO: A visitor takes a photograph of a board displaying stock prices at the Australian Securities Exchange (ASX) in Sydney, Australia March 6, 2017. REUTERS/Steven Saphore

Australia’s Quadrant Private Equity has signed an agreement to acquire the enterprise services division of ASX-listed Arq Group for A$35 million ($23.5 million) on a cash and debt-free basis.

According to Arq Group’s announcement, the enterprise division will be sold to an entity owned by a consortium comprising Quadrant Private Equity and certain members of the management team.

The transaction is expected to complete on 2 March 2020.

The net proceeds will be subject to adjustments for net debt items, working capital and insurance cover. This divestment will allow Arq to pare debt, focus on cost management and maximise options for its sole SMB business, the company said.

Following the transaction, Brett Fenton, who leads ARQ Group’s SMB division, will replace Tristan Sternson as ARQ’s interim CEO effective immediately.

“After engaging with numerous parties interested in acquiring the enterprise business over the past few months, we are pleased to announce the sale of the business to Quadrant,” said Andrew Reitzer, Chair of Arq Group.

Quadrant Private Equity, set up in 1996 as Quadrant Capital, focuses on investments across Australia and New Zealand.

The PE firm has so far led 71 investments in the past 10 funds (with 55 exits) across a range of sectors including retail, healthcare, media, consumer foods, financial services, and other sectors.

Last October, the Sydney-based PE firm offered to take ASX-listed outdoor advertising company QMS Media private for A$420-million ($288 million).

Earlier, Quadrant announced that it was close to acquiring a majority stake in Love To Dream, a designer of innovative baby swaddles and sleepwear, for an undisclosed amount.

Last July, the PE firm agreed to acquire GraysOnline and AreYouSelling businesses from fleet leasing and management group Eclipx Corporation for A$60 million ($42 million).

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.