StepChange backs up growth plans with $11m Westpac facilities

• $10m Bank Bill Business Loan and $1m Overdraft Facility boost StepChange’s flexibility to fund growth and acquisitions
• Facilities are strong recognition of the company’s credentials after Ord Minnett’s recent ‘buy’ rating on ‘one of the ASX’s most compelling tech small caps’
• They closely follow the launch of StepChange’s first US base in Houston, targeting Tier 1 energy and tech clients

Special report: StepChange Holdings has secured $11 million in new debt facilities with Westpac, giving the digital transformation specialist added capital flexibility to pursue its scale-up goals.

The company has finalised a $10m, three-year Bank Bill Business Loan and $1m Business Overdraft Facility with Westpac (ASX:WBC).

Both are designed to move the dial on StepChange Holdings’ (ASX:STH) inorganic growth initiatives outlined in its IPO prospectus released earlier this year.

More specifically, the facilities have been designed to give the business flexibility to swiftly deploy capital as strategic acquisition opportunities are identified within the fragmented Australian service provider market.

This will enable StepChange to scale operations and build on its reputation as a leader in Enterprise Resource Planning (ERP) and digital transformation.

The company has built deep expertise in supporting Tier 1 clients to optimise ERP software supplied by global software giant SAP across two decades from its Perth base.

“These facilities enhance our balance sheet strength and provide additional capacity to execute on our growth strategy across key sectors including energy, mining and government,” managing director Shane Bransby said.

“The agreement with one of Australia’s major banks also underscores StepChange’s creditworthiness and its disciplined approach to capital management.”

StepChange’s potential was recently recognised by Ord Minnett, which issued a buy rating, forecasting a 64% upside from current levels and calling it one of the ASX’s most compelling tech small caps.

Howdy Texas

It also closely follows the company opening its first overseas base in Houston and registering StepChange Consultants USA LLC – another major goal flagged in its prospectus.

Texas has long been a powerhouse of global energy and remains home to many of the world’s largest oil, gas and renewables players.

It’s also emerging as a tech epicentre with OpenAI, Nvidia and SoftBank investing billions in the Stargate data centre network.

Apple has pledged to match the Stargate investment through efforts such as opening a new facility in Texas to support its AI software, making the Lone Star State an ideal springboard for StepChange’s offshore growth plans.

This article was developed in collaboration with StepChange Holdings, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.