ASG renews Western Power contract for AU$40m

Australian-listed IT services provider ASG Group has renewed its managed services contract with West Australian government-owned electrical infrastructure and maintenance provider, Western Power, in a AU$40 million deal.

IT consultancy firm, ASG has secured AU$40 million after renewing its managed services contract with Western Power, in a three-year deal.

The state government-owned power maintenance and infrastructure provider has tasked ASG with the completion of its IT infrastructure transformation; as well as the management of its vendor transition program, which includes managing Western Power's datacentre consolidation and move.

"The awarding of the contract follows a highly competitive selection process, with ASG not only being the sole incumbent vendor to be retained, but also expanding the scope of its services," the company said.

"This latest contract builds on the existing five-year managed service relationship between Western Power and ASG."

ASG has held a AU$35 million IT services contract with Western Power since 2010, when it was charged with supplying datacentre facilities, mid-range infrastructure, and network and VoIP services to the electricity utility for five years, with two one-year extension options.

The company also secured a AU$35 million contract with international contractors CIMIC -- previously Leighton Holdings --last month in an initial five-year managed services contract to provide CIMIC with both application and infrastructure managed services supporting CIMIC's JD Edwards enterprise resource management and business intelligence suites globally.

In May this year, the company signed with another West Australian government owned power company, Synergy, in a AU$15 million, three-year managed services contract. Synergy -- which retail electricity to the state's south-west, including Perth -- merged with Verve Energy early last year, with the former having previously utilised ASG as its managed services provider.

The same month, ASG secured an AU$18 million with the Department of Communications in a five-year contract which would see ASG transition the federal government department into the cloud.

The company said that they signed another AU$15 million worth of contracts earlier this year with New South Wales-based State Super Financial Services, Amazon Web Services, and construction company Boral.

In its half-year earnings for the six months ending December 2014, ASG reported that net operating profit reached AU$5.7 million, a 49.8 percent surge from the previous year's result of AU$3.8 million for the corresponding period.

The company said that it is currently in negotiations for opportunities in excess of AU$50 million, whilst also expecting the release of its 2015 half year results on Tuesday August 18.