Western Australia-based services provider, Empired, has handed over $1.86m in cash and shares to acquire IT consulting firm, Quadrant Group.
The sale price is a combination of $1.74m in cash along with 300,000 unlisted options at $0.40 each. Empired managing director, Russell Baskerville, said Quadrant would become a strategy division of its enterprise services business. The ASX-listed company also has an outsourcing services business providing desktop and server management.
Quadrant specialises in business continuity, risk management, IT auditing, planning and strategy and governance.
Baskerville said these skills were complementary to its data management, advanced infrastructure and associated services. "Quadrant is more of a strategic offering and takes us higher up the food chain," he said. "They have targeted CEOs and CFOs, while our traditional services have focused on the technical staff."
There was also little overlap in customers, Baskerville said. "Quadrant deals with big government organisations, while we have been very corporate focused," he said. "This gives us a strong introduction into Western Australian government." Empired will retain all 28 Quadrant staff, bringing its headcount up to 125. As part of the deal, Quadrant managing partner, Glenn Hocking, has been appointed national practice manager.
Baskerville said the acquisition would lift its budgeted earning by 35 per cent. Quadrant expects generate $3.37m in revenue and an EBIT of over $600,000 in the next financial year. It chalked up $2.74 million in revenue and EBIT of $462,000 in 2007.
Baskerville said Empired was open to further acquisitions that tied into its services portfolio.