Looking to expand its IT services capabilities, Oakton has purchased Melbourne-based data warehousing and information management business, Clickstream.
According to an ASX statement, the value of the deal will be based on Clickstream's performance in the 12 months to June 30, 2006. It is expected to contribute an additional $6 million in revenue to Oakton's bottom line in the next financial year. The deal is scheduled to be finalised by July 31.
Managing director, Neil Wilson, said Clickstream would enhance its abilities in the information management and analysis space.
"It's not about bringing in brand new services. This strategic acquisition is more about removing a competitor while also bulking up our business to the next level in terms of scale," he said.
"Clickstream will deliver a range of new customers, which we can add into our portfolio and provide more services to." Wilson said Toyota, Coles Myer and Fairfax were key clients.
About 50 staff from Clickstream would be moved into Oakton's Melbourne branch, boosting the company's total headcount to 510. This would see 100 staff now focused on IT services specifically, he said. Some back office staff cuts are expected.
Oakton announced plans to find suitable local acquisitions in the last financial year following three years of organic growth. Wilson said it would continue to keep its eyes open for purchases that could augment its services capability.