Allegro Funds acquires outsourcing firm Nutun Australia for $120Mn

MELBOURNE, AUSTRALIA — Investment firm Allegro Funds has acquired outsourcing company Nutun Australia for $120 million, effectively expanding its workforce across Australia, New Zealand, and Fiji.

The deal, expected to be completed in mid-April, gives Allegro Funds access to over 900 workers in Nutun Australia’s portfolio. Additionally, the deal will enable Nutun Australia to enhance its service offerings.

“Nutun Australia is a profitable and growing business, and we see a great opportunity to continue to build its capabilities through organic growth, further investment in technology, and industry consolidation,” said Allegro managing director Jeffrey Largier.

The Australian arm of Nutun will continue to work closely with Nutun South Africa –  its parent company – under a long-term strategic partnership.

This will allow both firms to serve existing clients and foster new partnerships while sharing knowledge and intellectual property, and collaborating on solutions. 

The sale comes amid struggles by Transaction Capital, Nutun’s parent firm. It has incurred losses in its SA Taxi subsidiary amid structural changes in the minibus taxi industry. 

Nutun had said in December that operations were being reviewed to reposition or let go of non-core assets. It then decided to sell its Australian business, which includes operations in Australia, New Zealand, and Fiji.

“The transaction will help streamline Nutun’s operating structure as the business continues to strengthen its position in the global BPO services market and scale its outsourcing services across industries and geographies,” Transaction Capital’s director said.