Australia clears Integris deal for First Focus buy

US managed IT services firm Integris has received Australian foreign investment clearance for its acquisition of First Focus, allowing the OMERS-backed deal to proceed.

The approval was granted by the Assistant Minister for Productivity, Competition, Charities and Treasury on advice from the Foreign Investment Review Board. First Focus is Australia's largest managed service provider focused on small and mid-sized businesses.

Once completed, the combined group will serve more than 4,000 businesses across Australia, New Zealand and the United States, with more than 1,200 staff. Clients will continue to be supported by local teams while gaining access to broader AI, cybersecurity and 24/7 support resources across the group.

Ross Sardi, Chief Executive Officer of First Focus, will become Chief Innovation Officer of the combined group while remaining Chief Executive Officer of the Australia and New Zealand business. He will also continue to lead the company's acquisition strategy in the region following recent New Zealand deals for OneHQ and Optimus Systems.

The transaction brings together two managed services providers at a time when smaller companies are under pressure to make decisions on AI adoption, security and technology spending with fewer internal resources than large enterprises. Both businesses target small and mid-sized customers, a segment they say increasingly wants outside technology advisers to play a broader role in operational and commercial decisions.

First Focus supports more than 800 organisations and 35,000 users across Australia and New Zealand. Founded in Sydney in 2003 by Peter Paddon, it has been ranked by Cloudtango as Australia's top mid-market managed service provider for nine consecutive years.

Broader push

The deal is built on combining local customer relationships with a larger delivery network. Integris is based in the United States and backed by Canadian pension fund investor OMERS through its private equity arm.

Sardi said the managed services market had moved beyond a basic support model centred on tickets and break-fix work. He pointed to growing customer demand for advice covering workflows, data, cyber risk and business priorities as AI tools spread into day-to-day operations.

"SMBs are looking for a partner that understands their business and can help them put AI to work safely and profitably. AI is already at work across our own operations, enabling faster, more proactive advice," said Ross Sardi, Chief Executive Officer of First Focus.

First Focus has been building that position through a service called CORE, which combines managed IT support, cybersecurity, data governance, AI adoption, automation and productivity work in one managed service. The service is already being used in client environments.

One example is Seafolly, which used a grant from First Focus's AUD $100,000 AI Investment Fund to trial a natural-language AI assistant on its shop floor. The retailer used AUD $20,000 from the fund for the project, which draws on validated internal systems to answer staff questions while customers are in store.

Seafolly is running the system as a controlled commercial trial with targets including higher conversion, a 15 to 25 per cent reduction in staff onboarding time, and fewer repeat help-desk queries. The example shows how managed service providers are trying to move from infrastructure support into advice on business process and productivity.

Leadership view

Sardi said smaller companies can often adapt more quickly than larger organisations when adopting new tools, but still need outside guidance.

"Technology used to be a back-office cost. Today, the technology partner needs to be in the room alongside accountants, lawyers and other trusted advisers when businesses make decisions about growth, productivity and risk. Owners want to trust their technology partner the way they trust their auditor. We have built a company that earns that trust, and we are measured on the outcomes we help clients achieve," said Sardi.

He added that scale does not necessarily determine speed in AI rollout.

"A team of 25 can change how it works far faster than an enterprise of 2,000. But they also need a mix of strategic counsel and expertise to deliver," said Sardi.

Integris Chief Executive Officer and Executive Chairman Rashaad Bajwa said the two companies had reached similar conclusions about where demand from smaller customers was heading.

"We read this market the same way," said Rashaad Bajwa, Chief Executive Officer and Executive Chairman of Integris.

"Together we can give small businesses secure, governed, enterprise-grade managed AI and IT services, the kind that used to sit only in big companies, run by local teams who answer to the client," said Bajwa.