ASG signs AU$23.8m federal department managed services deal

ASG Group has inked a AU$23.8 million deal with the Department of Infrastructure and Regional Development in a minimum five-year managed services support contract.

Australian-listed ASG Group has signed a AU$23.8 million deal with the Australian Department of Infrastructure and Regional Development.

The IT consultancy firm will provide the department with infrastructure and desktop services as well as end-to-end service management for five years, with options to extend the deal for a further three years thereafter.

ASG CEO Geoff Lewis said the company has been providing the department with managed services for over seven years.

"This contract solidifies our position as a premier provider of desktop and infrastructure services for the federal government," he said.

In May, ASG secured a five year AU$18 million contract with the Department of Communications, which would see ASG transition the federal government department into the cloud.

ASG also has a number of state government contracts on its books, having re-signed a AU$9 million two-year managed services contract with the Victorian Department of Education and Training for its information technology division, earlier this month.

Last month, ASG signed with Victorian energy provider United Energy and Multinet Gas in a five-year AU$22 million infrastructure managed services deal, which also has three one-year expansion options.

Three months into the 2016 financial year, ASG has already signed over AU$110 million worth of contracts, in addition to the Department of Infrastructure and Regional Development deal.

Over AU$200 million worth of contracts were awarded to ASG during the 2015 financial year, including the signing with Western Australian government-owned power company, Synergy, in a AU$15 million, three-year managed services contract. Synergy -- which retails electricity to the state's southwest, including Perth -- merged with Verve Energy early last year, with the former having previously utilised ASG as its managed services provider.

ASG also renewed its contract with another Western Australian government-owned company, Western Power in August, in a AU$40 million three-year deal. The IT consultancy firm has been tasked with the completion of the state government-owned power maintenance and infrastructure provider's IT infrastructure transformation, as well as the management of its vendor transition program, which includes managing Western Power's datacentre consolidation and move.

In July, the company also secured a AU$35 million contract with international contractors CIMIC -- previously Leighton Holdings -- in an initial five-year managed services contract to provide CIMIC with both application and infrastructure managed services. It will support CIMIC's JD Edwards enterprise resource management and business intelligence suites globally.

In its 2015 financial results, ASG told shareholders it had AU$345 million worth of Australian contracts in the pipeline.