Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
The acquisition is subject to certain conditions, including a restructuring of the Acumen Alliance group. The final price will be based on earnings for the 2007, 2008 and 2009 financial years, and is expected to be in the range of $A35 million to $A45 million.
The deal involves approximately 25 percent cash and 75 percent in Oakton shares with a one-year escrow term.
"This will be the seventh acquisition Oakton has made since listing in 2000 and is the most strategic in terms of scale and the establishment of our Canberra operation," said executive chairman Paul Holyoake. "It is pleasing to have followed up on our very successful Clickstream acquisition with an agreement to acquire such a major player in the market. Over time we would expect to yield synergy benefits from back office integration and client cross sell of the increased range of services."
According to Oakton officials, there is little overlap between the two businesses, although there is some commonality in the areas of enterprise strategy and architecture consulting, and in Microsoft Dynamics and PeopleSoft implementation services. Around 50 percent of Acumen Alliance's revenue comes from the ACT/Federal Government market, where Oakton does not currently operate.
Acumen Alliance chairman Robert Kennedy, said "We are very pleased to be joining a company with Oakton's reputation. They are clearly a good match for our current business and our intended strategic direction. Our combined scale, service offer and location coverage will position the combined group as a market leader." Kennedy will join the Oakton board if the acquisition succeeds.
No timetable was given for the completion of the deal.
David Bass
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