Australia’s Insitec has signed a $26.5 million deal adding technology recruitment specialists The Network to its growing corporate stable. Insitec Founder and Managing Director Michael Branch said acquiring The Network would significantly strengthen Australia’s sovereign defence capability giving local ICT professionals the opportunity to build skill and experience on leading edge defence projects and discouraging the talent drain overseas.
“This acquisition gives us a platform to meet the needs of the Australian Defence Force and makes it possible for us to bring new talent into the defence sector,” Branch said. “Over the next five years, we anticipate an extra 1000 plus people will be needed to support the ICT needs of the Australian Defence Force. Rather than stripping one project to support another, The Network give us access to skilled people who are currently inside and outside of the sector and, in turn, we give them access to dynamic new career opportunities in the Defence sector,” Branch added. “Insitec has worked closely with the Australian Defence Force for more than two decades so we deeply understand the pressures on the sector. As an Australian owned and operated company, and trusted partner of the ADF, we are proud to be helping to build Australia’s strategic and tactical advantage.”
The Network acquisition closely follows renewal of Insitec’s $43.5 million contract as technical and professional services provider to the Department of Defence’s Chief Information Officer Group (CIOG) Service Management Branch (SMB).
It also marks the first Australian investment for private credit firm Muzinich & Co with Insitec being advised by Sydney-based VCF Capital Partners on both the financing and acquisition of The Network. Founded in New York in 1988, Muzinich specialises in public and private corporate credit with US$37 billion (as of 31 May 2022) in fixed income credit assets under management.
Head of Asia-Pacific Private Debt for Muzinich Andrew Tan and Managing Director (Australia) Denis Rayel said they were attracted to Insitec as a well-established, highly reputable service provider that was well placed to succeed in the context of the push for Australian sovereign capability. The opportunity to partner with The Network is synergistic and complementary to Insitec’s core operations.
The Network is a multi-award winning recruitment agency that specialises in sourcing hard-to-reach talent to work with emerging technologies across digital, software & application development, cloud, IT security and data & analytics. Founded in 2013, the agency employs 20 staff from offices in Sydney and Canberra, with more than 100 IT professionals under contract, many of whom have top level government security clearance.
The Network’s Director Martin Sharman said the company would continue to operate under The Network brand and was committed to supporting its existing clients and consultants. “Our focus has always been to connect the right people, with the right opportunity at the right time, and our relationship with Insitec creates an exciting opportunity for us to extend further into the Defence sector,” he said.