Empired acquires Conducive for $8m
- 22 August, 2012 07:00
IT services provider, Empired (ASX: EPD), has acquired Western Australian IT consulting services provider, Conducive, for about 8 million.
Under the terms of the transaction, the purchase price will be satisfied through the issue of 5 million fully paid ordinary Empired shares plus three cash payments.
The first cash payment will be about $3.2 million due on contract completion, expected by the end of August, followed by two other milestone payments of about $1.7 million and about $1.9 million will be due July 31, 2013 and July 31, 2014 respectively.
The acquisition will be earnings accretive and is forecast to deliver approximately $9.5 million in revenue in FY13.
Empired will manage the Coreworx project information and cost control system for the Ichthys project for the next five years.
“The acquisition is a game changer for Empired’s applications business. It significantly expands our capability and our addressable market for multi-year managed services contracts that we can now contest,” Empired managing director, Russell Baskerville, said.
Empired also aims to be able to provide a broader range of services to many of its existing clients, particularly specialist services to the energy and natural resources sector.
“I have personally met with a number of Conducive’s major clients who are delighted with the service they receive and welcome Conducive being supported by a larger organisation,” he said.
According to Conducive managing director, Branden Dekenah, the transaction will offer great value for all its key stakeholders.