Australian IT services company, DWS, has acquired user experience (UX) digital design and innovation consultancy business, Symplicit, for an up-front payment of $8.5 million, followed by further payments up to a total of $6.5 million conditional on adjustment of the up-front price based on final FY2015 EBITDA and EBITDA growth performance over a three-year period.
The up-front payment is based on a FY201515 EBITDA multiple consistent with previous transaction multiples announced by DWS.
The $8.5 million will be funded by cash reserves and debt.
DWS said in a statement to the Australian Stock Exchange that the acquisition would provide it with the following key benefits:
- Annual revenue of approximately $8.5 million diversified across a range of clients and industry sectors.
- A leading UX and digital consultancy with about 50 staff and three offices.
- The opportunity to capture downstream revenues from building and managing digital applications emerging from Symplicit's projects.
- The potential to accelerate Symplicit's growth by leveraging DWS' national footprint and existing client relationship.
- An experienced management team committed to growing the business with DWS.
- Be EPS accretive in FY2016.