DJC Systems case study

Australia’s managed service provider (MSP) industry is consolidating, as it rides the tech innovation slipstream, fuelled by client investment in cloud migration, cyber security and artificial intelligence.


Finding adjacent opportunities

DJC Systems, founded by Daniel Church in 1999, is a managed service provider, specialising in IT infrastructure and cloud adoption solutions.

Aware of industry dynamics, Church is positioning DJC Systems for scale.

“If you aren't growing and matching what's happening around you, you may become obsolete. Bigger companies invest in automation, artificial intelligence and training, with economies of scale giving them buying power,” says Church.

It’s this growth push that has Church seeking strategic M&A opportunities, with focus on aligned businesses that could:

  • Bring a competitive advantage
  • Enable reach into new locations
  • Offer more products and services.

An ideal expansion opportunity

When a mature, complementary MSP came on the market, its appeal was that it would give DJC Systems a solid presence in New South Wales, along with other synergies.

 “It’s a great business, with strong systems, platforms and processes, that as a merged entity would create this really mature base for us to make other acquisitions from. A transformational merger is how I describe it.”

When the sale was agreed by both parties, decisions around how to fund, and structure the acquisition became key.


Structuring the deal

It was important to find a funding partner that could structure the deal in a way that directors weren’t required to use personal assets as collateral.

 

Macquarie, understanding the nuances of the industry, allowed debt to be secured against business cashflow.

 

“Macquarie Business Banking looked at our business, and the business we were looking to purchase, asked lots of questions and got it all done for us,” says Church.

“They took a deeper look, and have a genuine understanding of what our businesses does, with authentic interest in our growth,” says Church.

A springboard to further growth


“We've fostered a relationship that we leverage as opportunities arise. I can pick up the phone, call my Macquarie banker and say, ‘hey, we need to move.”

“Knowing that we've got a relationship that looks to the future – that's the most significant benefit of working with Macquarie Business Banking for me.”  

 

Daniel Church

Founder, DJC Systems

Request a call

 

Thank you for requesting a call. We will be in contact with you shortly.

Sorry an error occured, please try again.

Fill out your details below

By submitting this enquiry, I acknowledge that I have read the Macquarie Group privacy policy, and understand that Macquarie will use my personal information to contact me in relation to my enquiry, and for other general marketing purposes.

You can change your marketing preferences by telephoning Macquarie on 1800 806 310 or customising your preferences with the unsubscribe link included in our marketing communications. Please note that all of our calls are recorded. If you do not want your call to be recorded, please advise the Macquarie staff member.

 

Additional information

The information in this case study was finalised on 14 May 2024 .

This information has been prepared by Macquarie Business Banking, a division of Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502. It doesn’t take into account your objectives, financial situation or needs, nor is it intended as a substitute for any accounting, tax or other professional advice, consultation or service – please consider whether it’s right for you.