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ASG lands $13 million deal with Conroy's department

The deal includes managing the IT infrastructure and providing support services for the Department of Broadband

ASX-listed service provider, ASG (ASX:ASZ) has snagged a $13 million contract with the Department of Broadband, Communications and the Digital Economy (DBCDE).

Under the agreement, ASG will offer manage the department’s IT infrastructure as well as support services to desktops, mid-range infrastructure, applications and managed voice capabilities. The contract was the result of a tender process and runs for three years with three optional one-year extensions.

“With the new deal, it will bring in additional growth and we will increase headcount to deliver the services,” ASG general manager for federal region, Richard Everett, said.

The contract represents another significant windfall for the company in the Canberra region, according to Everett. But he remained tightlipped on how many staff ASG is looking to bring on.

The service provider has so far reaped in $71m worth of contracts since January. Everett said there will be more government and commercial deals announced shortly.

ASG counts the Department of Defence, the National Museum of Australia and Airservices Australia as clients. The company secured a $23m contract with Western Australia’s Department of Education at the beginning of the year.

According to a statement, ASG’s contract pipeline stands at more than $450m. It recently posted a $6.5m record net profit for the first half of the financial year.

Everett signalled acquisitions in the works to complement ASG’s organic growth.

“We’re looking to acquire in the consultancy and enterprise resource management (ERP) space and this should be finalised by the end of this financial year,” he said.

Everett could not disclose the companies ASG is currently in negotiations with.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: Airservices Australia, ASG, Department of Defence
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