IT services firm ASG Group has acquired ASX-listed Oracle database firm AD-B Group for $3 million, claiming it gives the company an in-road to lucrative defence contracts.
(Credit: ASG Group)
"[A-DB] has a great blend of government and blue-chip corporate clients, with presence in education, health, defence and financial services," ASG managing director Geoff Lewis said in a statement to the ASX today.
The acquisition tightens ASG's ties with Oracle, with development and administration skills in its software a core capability of AD-B. The buy adds 55 staff to ASG's ranks and has given it an office in South Australia it previously lacked.
"We believe the acquisition will provide ASG with a great additional customer base and a springboard to build a substantial market share in Queensland and South Australia," Lewis added.
A-DB has been based in Brisbane since 1997 and in Adelaide since 1983 with 2007 revenues at $6 million. The company specialises in Oracle and Microsoft database administration, Oracle application development and defence system support.
In August, ASG revealed it had awarded Lewis a 20 per cent pay increase, which brings his earnings to $1 million for the year. ASG last year saw it pick up large new deals with Multiplex, Virgin Blue, Ericsson, Hutchison Telecommunications and the Federal Department of Infrastructure, Transport, Regional Development and Local Government.
Lewis was unavailable for comment at the time of writing.