IT services company Ergo has announced a deal to acquire Limerick-based Asystec for €25m.
If the deal is cleared by the Competition and Consumer Protection Commission, it would create the biggest privately-owned Irish IT services company in the country with over 500 IT professionals across Ireland, the UK and North America.
Combined revenues would be expected to exceed €150m with a forecast of that to grow to €250m over the next three to five years, with the number of IT professionals rising towards 1,000, the group says.
Established almost 30 years ago, this would be Ergo's fourth acquisition since 2010.
After acquiring CDSoft, it followed that with iSite in 2015 and Micromail the following year.
Ergo says this latest acquisition aligns with its strategy to build on public, private and hybrid cloud capabilities.
Asystec, which provides IT and data storage services, has grown to a €40m company since it was founded a decade ago.
"The country is on the cusp of a period of economic growth and I want to make sure that Ergo is part of it. Supplementing our leading-edge technology with Asystec's, we believe we have the best IT services portfolio in the country and can be a key enabler, helping other businesses to grow and prosper," Paul McCann, CEO of Ergo said of the deal.
"We are hugely excited to be taking our business on the next stage of its journey, becoming part of Ergo at such a pivotal moment in the evolution of the IT services sector. Together we will be able to map and deliver future-proof IT strategies for fast-changing markets, creating new opportunities for our customers and our people," Les Byrne, Managing Director of Asystec said.
Mr Byrne will be joining the board of Ergo along with Aonghus O'Neill, Sales Director of Asystec.
The company’s Limerick headquarters and offices in the UK and US will extend Ergo’s geographic footprint internationally, as well as domestically.
