Ergo’s CEO said it will be a ‘transformative deal for the Irish market’, bringing together two IT players with combined revenues of €150m.
Ergo is acquiring Asystec in a bid to create one of the largest privately owned Irish IT services companies in the country.
The €25m deal, which is subject to clearance from the Competition and Consumer Protection Commission, will bring together more than 500 IT professionals across Ireland, the UK and North America.
Dublin-based Ergo is looking to expand its role as an enterprise cloud and managed services provider, and said the acquisition is part of its strategy to grow its public, private and hybrid cloud capabilities.
While the company specialises in Microsoft and Azure technology, Limerick-headquartered Asystec has expertise in AWS along with Dell Technologies and VMware tech.
Combined revenues of the companies will be more than €150m and are forecast to reach €250m over the next three to five years. There are also plans to increase the number of IT professionals in the business towards 1,000.
“This is a transformative deal for the Irish market, the coming together of complementary skills and services from two giants of the Irish IT sector,” said Paul McCann, who became CEO of Ergo last year.
“The country is on the cusp of a period of economic growth and I want to make sure that Ergo is part of it,” he added. “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.”
Les Byrne, managing director of Asystec, added that the deal was taking place at a “pivotal moment” in 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.”
Once the deal is completed, Byrne and Asystec sales director Aonghus O’Neill will join the Ergo board.
Ergo’s footprint will also be extended with the addition of Asystec’s Limerick headquarters and offices in the UK and US.
The Dublin group has been eyeing growth for some time and Asystec is its fourth acquisition in recent years. Since 2010, the company has snapped up CDSoft, iSite and Micromail.
In January 2021, Ergo also said it would create 60 new jobs during the year as part of a multimillion-euro investment in its cloud and managed services business.
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