Citadel Group acquires Gruden government business for $1.65M
- 03 December, 2018 10:39
The Citadel Group has acquired the government business of technology agency Gruden for $1.65 million, from IncentiaPay.
Citadel’s subsidiary Jakeman Business Solutions will take over the Sydney-based business, which specialises in developing software-as-a-service (SaaS) platforms in the eProcurement space.
The acquisition was made through Citadel Group’s available cash, 75 per cent of which will be paid upon the deal’s completion and the remainder will be paid subject to a working capital adjustment.
Gruden’s government arm currently works with the Federal Government on a Austender eProcurement platform, grants management system and managed services infrastructure.
It also provides records management and managed services infrastructure for the Victorian Government, plus an eProcurement platform for the NSW Government.
The Gruden Group’s other businesses, which include enterprise software, performance marketing and mobile technology platform will remain with IncentiaPay
“The acquisition of Gruden provides Citadel with valuable new SaaS platform capabilities and panel arrangements that we will leverage into new areas of government and private industry as we continue to execute our strategy of managing information in complex environments,” Citadel CEO Darren Stanley said.
The announcement coincides with Citadel winning a slew of new clients, including St Vincents Hospital in NSW whereby the company will deploy its Charm oncology system over a period of five years.
The deal comes 15 months after Citadel acquired Brisbane-based Charm Health, a specialist oncology e-health supplier, for $8.2 million.
In addition, the company has won another contract with Queensland Department of Transport and Main Roads to provide and manage an electronic Development Management Application system over nine years. The contract comes in addition to its 12-year Citadel-IX deal with the department.
The company also announced a $5 million-win with the National Disability and Insurance Agency to provide content and collaboration services, a $1.3 million-win to deploy upgrades for the Department of Defence’s Air 7000 project and an unspecified deal with Melbourne’s Swinburne University.
Meanwhile, Monash University has extended an existing five-year contract for another two years, putting it at a value of $25 million.
First signed in December 2015, the contract covers conference room audio and visual managed services for the university.
The wins mark a major turning point for Citadel Group nearly 12 months after Queensland Health indicated it intended to terminate its laboratory information systems contract with the company post-expiration.
However, five months later, it scored a 10-year contract with an unnamed Queensland Government organisation for its software and managed service solutions.