Stan Beer
Tuesday, 31 October 2006 17:29
IT Industry -
Listed Tech
Digital services provider Hyro (ASX:HYO) has signed an exclusive Memorandum of Understanding for an acquisition of technology and infrastructure services company Synergy Plus Pty Ltd, which Hyro says will boost annual revenues by $50 million.
Synergy, a Tier One IBM Partner, is headquartered in Melbourne, with
offices in Sydney, Adelaide and Canberra and employs around 140 people.
Synergy provides a range of infrastructure, development, integration
and support services for a range of Australia’s top 200 companies and a
number of government agencies.
“Synergy is a significant company with a history that can be traced
back as far as 1983,” said Hyro Chief Executive Officer, Mr Joe
Calavassy. “Synergy’s pedigree of clients is very complementary to
Hyro’s existing client base, with limited overlap. By acquiring
Synergy, Hyro will be adding well known names such as ColesMyer, ANZ
Bank, NAB, Berri, Qantas, Toyota, Heinz and VicRoads, amongst others,
as prospective users of Hyro’s end-to-end Digital Services offering.
Add this to Hyro’s existing customer base, and this will further
establish Hyro as the largest Digital Services company in Australia and
New Zealand.
“As Synergy’s services dovetail neatly into the Hyro Digital Services
offering, the acquisition will provide significant competitive
advantage for the merged business, and will add opportunities to seek
both incremental and organic revenue and earnings growth in 2007 and
beyond.”
Initial financial estimates for the Synergy business in 2007 are:
· Est. annual revenue 2007 approximately $50 million
· Est. annual EBITDA 2007 approximately $6 million
The final acquisition price, which will be in a combination of cash and
stock, will be subject to due diligence and shareholder approval, and
is expected to represent approximately 30% of the combined companies.