ASG Group (ASX:ASZ) has acquired Brisbane-based applications integrator, A-DB Group.
The ASX-listed IT services provider will pay $3 million - 30 per cent in cash and 70 per cent in ASG shares at $1.20 apiece.
ASG managing director, Geoff Lewis, said A-DB operated in a market in which it didn't have a presence and expanded its national coverage through offices in Brisbane and Adelaide.
“We didn’t have any coverage at all in Adelaide and we only had a small office in Brisbane,” he said. “Strategically, it fits really well with our plans to acquire organisations that are a good fit with us in areas where we believe there’s a lot of opportunity for growth. It also expands the service offerings that we can bring into their customer base.”
A-DB has a combination of government and corporate customers such as Queensland Health, Queensland Rail, BAE Systems, Santos and Bond University. Its range of services include Oracle software licensing, application development, defence systems counselling and specialist IT recruitment.
“We’re looking to integrate and exploit their customer base and to provide more capabilities outside of what they’ve been able to offer,” Lewis said.
At this stage, ASG will integrate all A-DB’s management staff into the business, Lewis said. A-DB has about 60 staff, pushing ASG’s numbers over 700.
“In the short term they will continue as A-DB,” Lewis said. “They will be integrated under the ASG brand, but that will happen over the next six to 12 months.”
Lewis said he was constantly looking at acquisition opportunities.
“We’re just working through the process,” he said.