Hyro To acquire additional $50m revenue

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.