ICT services outfit and Oracle shop ASG (ASX: ASZ) has jumped into the SAP market through the acquisition of Courtland Business Solutions.
The WA-based SAP shop will add both new capabilities and a customer book which includes mining, oil and gas, engineering, construction and infrastructure clients.
According to ASG’s CEO, Geoff Lewis, the acquisition effectively doubles the market opportunity of the services company as well as creating a source of future earnings through added exposure to the energy and mining sector.
“The acquisition of SAP capability is a highly strategic move that will significantly increase our product offering and effectively double our available market opportunity,” he said in an ASX statement.
“The SAP business is complementary to our existing Oracle capability and will allow us to leverage existing infrastructure and provide a complete range of services to clients.”
ASG intends to divide the SAP and Oracle capabilities into two practices, giving the company a modicum of choice in putting forward solutions to customers.
ASG did not reveal an exact price for the acquisition but said the figure was based on a multiple of five times earnings before interest and tax.
The acquisition is the second in as many months. In Early March ASG acquired Melbourne-based IT consulting firm, Dowling Consulting.
The firm added high end consulting services to ASG’s managed services offering. It also added Australia Post, National Australia Bank, Victoria Police, Bluescope Steel and Pacific Brands, among other big names to its customer book.
ASG has also added significant new business in recent months with the landing of a desktops, servers and networks services contract worth up top $41 million with the Department of Prime Minister and Cabinet in March.
During the month it also picked up a three-year $13 million contract with the Department of Broadband Communications and the Digital Economy (DBCDE).
In February it scored a five-year $35 million contract with Western Power and unveiled a new data centre.
The company is also “actively assessing” future acquisitions.