Kiwi Microsoft services provider Intergen has been bought by Aussie IT services company Empired for AU$17.4 million.
The deal creates the trans-Tasman’s largest Microsoft services provider, with 825 staff across 15 Australasian offices and one North American office.
Tony Stewart, Intergen group chief executive officer, says the acquisition process was ‘largely about finding the right partner to support our growth and take our organisation to new heights’.
“After a lengthy process with many participants, we are delighted to be joining with Empired for the next chapter in our evolution.”
Intergen’s 370 New Zealand and North American staff will continue to support clients under the Intergen brand, while the Australian offices will merge with Empired’s operations.
Intergen has revenue of around $60 million, nearly equal to Empired’s FY14 revenue of $67 million. Empired says it expects FY16 revenue in the range of AU$145 million to $165 million.
Earlier this year the Kiwi company was named Microsoft New Zealand ERP Partner of the Year, for the second consecutive year, and took out a Microsoft Preferred Supplier Brand Value 2014 Award.
ASX-listed Empired will pay $5 million in shares and cash upfront. The remaining $12.4 million will be settled in cash over a three year period and is subject to performance criteria.
In announcing the acquisition to the Australian Securities Exchange earlier today, Empired managing director Russell Baskervill dubbed the deal a ‘transformation acquisition for Empired’.
“It strategically positions Empired as the largest provider of Microsoft based application services in the Australasian region and cements us as a leader amongst our ASX listed peers in scale, capability and geographic reach,” Baskerville says.