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ASG buys Capiotech for $30 million

ASG buys Capiotech for $30 million

Capiotech will boost ASG’s service capabilities, particularly within business intelligence and enterprise performance management.

ASX-listed services provider, ASG, (ASX:ASZ) has splashed $30 million on acquiring IT consulting firm, Capiotech.

Capiotech will boost ASG’s service capabilities, particularly within business intelligence and enterprise performance management. ASG CEO, Geoff Lewis, said the acquisition would also strengthen the Oracle relationship, and provide a new set of customers on the east coast to service.

“The acquisition will also give us a greater scope with our existing customers,” Lewis said. “Capiotech’s CEO and its senior management are all very experienced people, and we’re very excited about having them on-board.”

Capiotech has 90 employees in Sydney, Melbourne and Brisbane. All staff would be retailed under the acquisition, although details on where they’ll fit into the ASG ecosystem are to be hammered out over the next few years. In the shorter term, Capiotech would retain its branding.

“The first stages of the acquisition will happen very quickly, and Capiotech’s staff will be sharing offices with us in the very near future,” Lewis said. “We also run state-of-the-art financial systems that I expect Capiotech will be keen to adopt.”

Capiotech’s customer base includes Qantas, ANZ Bank, Commonwealth Bank, Macquarie Group, NAB, Vodafone and Queensland Department of Transport and Main Roads. Its CEO, Steve Pennisi, said it worked with ASG in the past and saw significant growth opportunity for both businesses.

ASG has experienced major contract wins in recent months including a $41 million contract with the Department of Prime Minister and Cabinet, Wester Power and the West Australian Department of Education.

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Tags capiotechasgMergers and acquisitions

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