ASX-listed network integrator, Allied Technologies Group, has inked a deal to acquire Melbourne-based TUSC Computer Systems for an estimated $6.7 million.
Chairman and founder of TUSC, John Gwyther, joins Allied’s board of directors while Daryll Goodall will remain as managing director of TUSC.
TUSC, whose clients include Telstra, United Energy and City West Water, will have its back office systems and sales and marketing resources integrated with Allied.
The deal requires business as usual for the two companies, at least until a 12-month earn out period is complete.
Goodall is positive about TUSC becoming part of the Allied stable.
“It gives us more capital with which to grow our business,” he said. “We’re becoming a national player and can offer more credibility and routes to market.
“The deal extends us into new areas such as security and physical infrastructure management and should make us the biggest ITIL provider in Australia. It should put us up there – in infrastructure management terms – up there with HP and IBM."
Asked about whether the move into infrastructure management would see them up against current partner HP, Goodall said that when companies get larger, commitment grows too.
“We’re not exclusive, they’re not exclusive – our goal is to provide the best end-to-end solution,” he said.
The acquisition strengthens Allied’s Enterprise Management Solutions business unit, recently created as part of a corporate restructuring.
CEO and managing director of Allied Technologies, Ray Doak, said the takeover would add significant geographic coverage as well as an improved customer and skills base.
“While Allied specialises in government contracts, TUSC has a diversified customer base in telecommunications and utilities … it ticked all the boxes,” he said. “John [Gwyther] is also a well-known and respected figure in the industry and we’re excited to have him on our board.”
Doak said there would be further additions to the Allied Group in the future. At present, he was looking for companies that would be earnings-per-share positive in the first year of acquisition and have 10 years solid trading in its field.
“We’ve targeted a few companies that we’re now talking to,” Doak said. “We’re looking for smaller groups with the right expertise to bolster our business units.
“Things are coming together as planned – I’ve been working very long hours. It’s time I took a few days off."
Allied acquired Sydney-based videoconferencing and collaboration specialist, ServicePoint, in April.