DWS (ASX:DWS) has acquired Projects Assured, taking control of the Canberra-based strategic management and IT consulting business in a total deal worth $43 million.
Projects Assured was established in 2015 and employs 100 staff all based in Canberra, with DWS to pay $30 million initially funded by cash reserves and debt.
A further $13 million in payments are expected conditional on the earnings before interest, tax, depreciation and amortisation (EBITDA) performance of Projects Assured over a five-year period.
Terms of the transaction will see Project Assured co-founders and joint executive general managers David O’Rourke and Greg Sly remain with the company for five years, as per the terms of the deal.
Through the acquisition, DWS will have an established brand and key Federal Government and other Canberra-based clients.
DWS expects the 2019 financial year revenue for Projects Assured to be approximately $35 to $40 million diversified across a range of clients.
"The acquisition of Projects Assured is consistent with DWS Limited’s strategy of diversifying earnings and increasing our exposure to Federal Government," DWS CEO Danny Wallis said. "It is also consistent with our stated aim of making earnings accretive acquisitions to supplement the wide-ranging suite of IT and strategic consulting services already provided by the Group."
Founded in 1991, DWS is an ASX-listed Australian company specialises in cloud, digital transformation and business intelligence solutions, alongside system integration, managed services and business strategy.
Wallis said the combined entity will have 800 staff across both businesses.
"DWS shares our vision for the future of the Projects Assured business and we are delighted to be part of a leading ASX listed Australian IT services group," O’Rourke and Greg Sly added.
DWS expects EBITDA for the group to be in the range of $21.25 million - $22.5 million subject to final trading in June 2018 and the completion of the statutory audit of the DWS group.
Last year, DWS entered into a scheme implementation agreement to acquire SMS Management and Technology (ASX:SMX), in a deal valued at approximately $124 million.
ASG later made a bid also worth around $124 million which would later be accepted with ASG ultimately owning SMS.