Australian ASX-listed IT services company, Empired Limited, has acquired New Zealand IT services firm, Intergen Limited, for $NZ19.3 million ($AUD17.4m).
Empired managing director, Russell Baskerville, brands the deal "transformational," and claims it positions Empired as the largest Trans-Tasman Microsoft-based application services provider, with 825 staff across 15 Australasian locations and one North American office.
“[The acquisition] cements us as a leader amongst our ASX-listed peers in scale, capability, and geographic reach.”
"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," Baskerville, said.
"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."
As part of the deal, Empired will inherit Intergen's annualised revenue of $AUD60m, adding to its own performance of $AUD67m. Empired expects fiscal 2016 revenue between $AUD145m and $AUD165m.
All Intergen directors and senior managers will remain with the business, and Intergen shareholders will become shareholders in Empired's newly-enlarged business.
According to a statement to the ASX, key management (unspecified) are committed to a long-term future with Empired, with significant financial penalties to be imposed should they leave within the three years post-acquisition.
Additionally, Intergen's 370 New Zealand and North American staff will continue to support clients under the Intergen brand.
Terms of the deal will see Intergen's Australian offices will merge with Empired's operations, where there is a strong alignment with Microsoft services, including SharePoint and Dynamics CRM.
"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," Intergen Group chief executive (CEO), Tony Stewart, said.
"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."
Established in 1999 in Western Australia, Empired Ltd is a national IT services provider who delivers enterprise class IT services and solutions.
Earlier this year, Empired purchase Sydney-headquartered IT consulting company, eSavvy, for $AUD2.2m, which gave it 18 staff specialising in customer relationship management (CRM0 consulting and integration services.