IT services provider ASG has delivered on its plans to penetrate the SAP market with the acquisition announced this morning of Courtland Business Solutions.
Founded in 1994, Courtland is a Western Australian-based ERP specialist company, embedded in the lucrative engineering, mining, oil & gas, construction and infrastructure sectors.
“The acquisition of SAP capability is a highly strategic move that will significantly increase our product offering and effectively double our available market opportunity,” said ASG CEO Geoff Lewis. ASG already has capability in the solutions offered by SAP rival Oracle.
“We are also particularly pleased to be increasing our exposure to the mining and oil & gas sectors that are showing activity that is expected to continue well into the future”
Courtland Managing Director Peter Lander said he was “delighted” about the acquisition. “We are very pleased to be aligned with a national IT services group of the caliber of ASG,” he said. “The prospect of combining the ASG and Courtland SAP businesses is very exciting and we believe there is a sizable opportunity for the future growth of our complimentary businesses.”
The price of the acquisition is the earnings multiplied by five, before interest and tax.The full financial year of the ASG acquisition of Courtland will be FY11, with ASG predicting that the earnings per share will be accretive in that year.
ASG’s last acquisition was last month when they purchased Melbourne based IT Consulting firm, Dowling Consulting. It was a move to expand ASG’s arms to the east coast, Dowling had a total 33 staff in capitol cities Sydney, Melbourne and Brisbane.