Invigor taps into BI market with acquisition

Invigor Group has acquired Search Results Group, worth AU$5.8 million, as its next step of transforming the company into a digital solutions group.

ASX-listed information technology and digital solutions firm, Invigor Group, has forecasted that its potential acquisitions will have a "transformative effect" on the company as it plans to hone in its focus on business intelligence and big data, particularly in the small to medium enterprise market of Australia and New Zealand.

Invigor announced on Monday that it signed a foundation agreement to acquire Search Results Group, an online media agency, for AU$5.8 million.

The company also completed earlier this month a 60 percent acquisition of Global Group Australia, valued at AU$4.4 million.

Invigor executive chairman Gary Cohen said its most recent acquisition of Search Results aligns closely with Global Group Australia, and the company's plans to transform into a digital solutions group.

"Invigor Digital Solutions is quite a global group and we finished building that up a few weeks ago, and it focuses on business intelligence and big data. We're basically taking a lot of internet information and making it available either to the customers or to the businesses themselves to make business intelligent decisions, and help them sell things or make them better or cheaper," he said.

"The acquisition of Search Results aligns with that because it brings 4,000 customers across Australia where we will help host their websites and help them get presence on the net. What we're trying to do is help them define their product sets better, so we can actually have more products for them to sell to the customers."

This is in addition the company's announcement last Friday where it proposed to acquire a 20 percent share of My Verified ID Corp, a US -based company specialising in the development and distribution of universal verified sign-in technology.

"My Verified ID is another core part of the jigsaw puzzle," Cohen said, highlighting that internet verification is another key part the company plans to tap into as part of the plan of servicing SMEs in the ANZ market in the short to mid-term.

Invigor has now forecasted the acquisitions will boost operating revenue for the second half of 2014 in the range of AU$2.5 million to AU$3 million, and EBITDA is expected be around break even.

Invigor expects to see operating revenue increase to approximately AU$10 million for the 2015 financial year, with an EBITDA margin of approximately AU$2.5 million.

Invigor Group was previoulsy known as Hyro, the company that Cohen took over as chairman in mid-2012. Last year, Cohen sued Kit Digital for AU$15.2 million plus damanges for breaching the contract of sale for Hyro's digital business. 

Cohen was also tied up in another case in 2011 with his brother Brian Cohen. The company that Cohen had previoulsy founded, iSoft, was sued by his brother , Brian Cohen, over allegations that there was a breach of employment contract during Brian's stint as the company's chief technology officer.