Efex strengthens cyber services with Datcom buy amid expansion

Efex has acquired Datcom, a mid-market cybersecurity service provider in Australia, as part of its ongoing expansion in managed IT services.

Datcom, founded in 1997 by Jay Sayed, has been delivering strategic cyber security guidance, customised infrastructure, and operational management for more than 25 years. Its integration into Efex is intended to enhance the company's managed services and cybersecurity capabilities for existing and future clients across Australia and New Zealand.

The transaction follows a notable period of growth for Efex, during which it has made five acquisitions in the past 18 months as it pursues a targeted growth strategy. The company was established by Founder and Chief Executive Officer Nick Sheehan in Sydney in 2013. Since then, Efex has evolved from a single office technology reseller to a national technology services specialist with a client base of over 7,500 customers and 22 locations across Australia and New Zealand.

Nick Sheehan commented on the acquisition, stating: "Strengthening efex's cybersecurity offering has been a priority for efex in the wake of increased cyber breaches and breach attempts. This is not surprising as the most recent data from the Office of the Australian Information Commissioner (OAIC) shows there were more than 500 notifiable breaches for Australian businesses in a six month period."

Cybersecurity incidents continue to be a focus for Australian businesses, as demonstrated by data from the Office of the Australian Information Commissioner, which reported over 500 notifiable data breaches in just six months. This underscores the demand for more advanced protection and resilience for organisations amidst a complex, evolving threat landscape.

Sheehan further stated: "efex clients choose us to ensure their systems and platforms are market-leading and can stand up to increasingly sophisticated and relentless cyber breach attacks. Acquiring Datcom, a recognised leading provider, ensures we satisfy that priority for all our clients."

He also highlighted the expertise that Datcom brings to Efex, saying: "The Datcom team are experts in this highly complex and continuously evolving landscape, which is increasingly difficult for businesses to navigate. Our integration will deliver more sophisticated cybersecurity support for our clients across the Trans-Tasman, leveraging advanced automation and in-depth threat analysis to help our clients identify vulnerabilities and build more resilient systems."

Efex's recent acquisition history includes Aish IT in Adelaide, Wyscom in Canberra, Worldmark Corporate Consulting in Geelong, and Medihost Solutions, a healthcare IT provider. In 2024 alone, these acquisitions introduced more than 750 new clients to Efex and established its presence in additional states and territories.

The company's strategy of combining multiple managed service providers is designed to consolidate the fragmented SME IT and managed services market, especially for high-performing businesses in major cities, as well as regional and rural locations.

Datcom will operate under the Efex brand following the acquisition and will retain its team of cybersecurity specialists, continuing to be led by Rube Sayed. Efex and Datcom will prioritise the smooth integration of their operations over the coming months.

Both companies state the acquisition enhances their ability to provide specialised managed services to sectors including professional services, education, healthcare, mining, and local government across Australia and New Zealand.

Efex's ongoing expansion is characterised by a deliberate focus on enhancing its cyber security offerings in response to the increasing frequency and sophistication of cyber threats affecting businesses in the region.