Ergo acquires CDSoft for ‘seven-figure sum’

5 Nov 2010

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The consolidation of Ireland’s leading IT companies continues with the latest acquisition of CDSoft by Ergo. According to sources, CDSoft was acquired for a seven-figure sum.

The move comes just days after PFH acquired Redstone Technology for €2.5m.

Ergo has built up a multi-million euro business in the IT services space and in recent weeks the established IT firm raised €3m in venture capital and will create 33 new jobs as its Fenergo financial software business goes global. Fenergo – derived from the Latin "to lend" – has raised €2m in funding from Enterprise Ireland and the European Investment Bank to internationalise the product that helps financial operators like banks and building societies reduce their exposure to risk.

Some 34 CDSoft staff will relocate to Ergo’s East Point head office in Dublin, expanding Ergo’s infrastructure practice with a stronger focus on network services and virtualisation.

“The move consolidates our position as one of Ireland’s fastest-growing IT companies, something we have achieved by listening to customers and meeting their specific business needs,” said John Purdy, CEO, Ergo.

“It is an approach that we will now extend to CDSoft customers. They can be reassured that we will maintain the high level of service that they are used to. We also look forward to presenting an enriched services portfolio to new customers that will bring together the strengths of both companies.”

Synergies with CDSoft are expected to contribute at least 20pc to Ergo revenues in the first year, bringing the total revenue for the group to €30m. As a joint entity, the enlarged company will account for 35pc of Microsoft’s virtualisation business in Ireland.

CDSoft has been has been providing IT hardware and software to Irish SMEs and enterprise level businesses for 17 years.

The company is a Microsoft Gold Certified Partner with strong technical competencies in unified communication with Microsoft Lync (formerly Office Communications Server) and Microsoft Hyper-V. Both products will become a core part of Ergo’s already extensive Microsoft expertise.

Knowledge and resources

Gerry Kerr, managing director of CDSoft, said: “I look forward to working closely with Ergo, confident that customers on both sides will see tangible benefits. The sum total of the two companies will be stronger than the individual parts. Customers will have access to a deeper pool of knowledge and resources.”

Ergo is an end-to-end provider, leveraging 17 years of experience and skills in all core IT competencies.

A pioneer of managed service delivery in Ireland, Ergo continues to innovate and bring strategic value to IT through a combination of best-of-breed products from partners like HP, Microsoft and Adobe, and software solutions developed at its R&D centre. The company has become a strategic IT partner to leading organisations such as Eircom, Investec, the Irish Revenue Commissioners, VHI and EBS.

Ergo recently won the prestigious Microsoft Partner of the Year Award and is the only Microsoft partner in Europe to be "Services Ready" (the highest achievement for service delivery in a specialist area) for System Center technology, used for managing complex IT environments.

Purdy added: “We are always looking to innovate and improve ourselves. The acquisition of CDSoft is just the start of an aggressive acquisition campaign which will build on Ergo’s product and services portfolio and the geographic reach of our service team.”

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com