IT services provider PS&C (ASX:PSZ) has acquired Canberra-based services provider NTH Consulting.
The purchase value is set to consist of four times near-term earnings before interest and tax (EBIT) of $250,000 on top of an earn out using a mix PS&C scrip and cash.
The acquisition of NTH, which has a focus on digital transformation, cyber security and service integration and management (SIAM), will help PS&C expand its customer base to include the Australian Capital Territory and Federal Government.
PS&C also expects to extend its capabilities across strategy and governance, cyber security, technology and project services, service integration and management with the acquisition.
According to PS&C letter to shareholders filled with the Australian Securities Exchange (ASX), NTH forecasts revenue of $1.6 million for the 2018 financial year, and up to $8.5 million for the 2019 financial year.
“The acquisition of NTH Consulting extends our footprint into a new region that gives us access to the Federal and ACT Governments where cyber security and governance are becoming increasingly important issues," PS&C managing director and CEO Glenn Fielding said.
"This platform combined with our existing capabilities and the outstanding growth potential of NTH makes NTH a strong fit for PS&C."
Synergies between NTH and the existing PS&C services will also allow NTH to expand its sales coverage and marketing initiatives.
In April, PS&C announced the acquisition of Melbourne-based technology consultancy business Seisma.
Seisma has 120 employees and is present in financial services, communications and utilities. The consultancy firm was forecasting FY18 revenues of $21 million and FY19 to exceed $28 million.
“We identified the need to increase our presence in the growing areas of digital expertise, information management and analytics, and Seisma has shown itself to be a growing IT provider and specialist in these areas,” Fielding said at the time.
The publicly-listed company reported statutory net profit after tax (NPAT) for the six months ending December 2017 of $269,000 off the back of its $37.4 million revenue tally, a vast improvement from the $6 million net loss the company reported the same period in the prior year.
PS&C, which has a strong focus on the government sector, is made up of three business units - People (technical and professional services), Security and Communications.