Published on the 21/10/2014 | Written by Newsdesk
ASX-listed IT services company Empired Limited (ASX:EPD) has acquired one of New Zealand’s leading IT services firms, Intergen Limited, for $A17.4 million via a Share Purchase Agreement to be paid over three years…
The deal will create the largest Trans-Tasman Microsoft services provider with 825 staff across 15 Australasian locations and one North American office – increasing Empired’s current staff numbers by 85 percent thereby improving resource efficiency and driving up gross margins. Empired Ltd is an Australian national IT Services Provider with, according to the press release, a broad range of capabilities and a reputation for delivering enterprise class IT services and solutions. It was established in 1999 and had an FY14 revenue of circa $70m. In documents released on the ASX, Empired stated that the acquisition “extends our capability and leverage to growth trends with proprietary IP”. It will significantly expand its existing Microsoft application services portfolio; launch Empired into Microsoft Enterprise Resource Planning (ERP) services (a large and high growth market not previously contested by Empired and a key platform and enabler of customer centricity and business innovation); and leverage Empired into high growth markets with proprietary IP in cloud and ‘as a service’ solutions based on Microsoft technologies. Intergen is forecast to generate over $A60 million in revenue in financial year 2015. Empired managing director, Russell Baskerville, said: “Our clients will benefit from a broader range of services, backed by a strong Australian listed company that offers superior service and agility to its international competitors. Our combined organisation is positioned to take advantage of significant growth opportunities, capitalising on the burgeoning Microsoft opportunity with solutions clearly focused on ‘as a service’ and ‘consumption’ based models around cloud, mobility, big data/business analytics and the advent of social in the Enterprise.” In a memo to clients, Intergen’s New Zealand CEO Simon Bright said: “We are very excited about this next step in our journey and what this means for our valued clients. This move significantly strengthens Intergen as a company and significantly enhances our service portfolio and depth of expertise right across Australasia. We are very excited to be joining with some of the most prestigious and recognised Microsoft partners across Australia and to be bringing this pedigree to the technology solutions we build for you. “Part of our overarching vision has always been to build a substantial Trans-Tasman operation with a leading edge innovation hub in North America. In joining with Empired we have achieved this. From 1 November, our Intergen Australia operations will become a part of Empired’s operations.” All of Intergen’s 370 New Zealand and North American staff will continue to support clients under the Intergen brand. Intergen’s Australian offices will merge with Empired’s operations, where there is a strong alignment with Microsoft services including SharePoint and Dynamics CRM. All Intergen directors and senior managers will remain with the business, and Intergen shareholders will become shareholders in Empired’s newly-enlarged business. Intergen Group CEO Tony Stewart said, “We have been growing Intergen’s operations in Australia for several years, and this deal accelerates our vision to become Australasia’s leading Microsoft provider. “I am very proud of the reputation we have built over 15 years and want to thank the many people and client organisations who have been part of the Intergen story. I look forward to being able to support our clients in new ways as a combined, larger business with greater depth across Australia and New Zealand.”