$2.5m transaction sees Cirrus snap up NGage
Cirrus has acquired Melbourne’s NGage Technology Group for $2.5 million expanding the Perth-based IT solutions provider’s geographical footprint into Victoria.
Cirrus says the acquisition provides it with a ‘highly complementary business’ with the combined entity providing greater scale and expertise to provide a higher level of service to clients.
“In particular the expanded group will be able to provide increased solution based offerings to clients while leveraging the existing business differentiators including the Cirrus Cloud based managed services and Cisco Gold certification,” Cirrus says.
Matt Sullivan, Cirrus managing director, dubbed the deal a ‘key acquisition’ for the company, which has plotted a course of strategic acquisitions for growth.
“This is a key acquisition for Cirrus addressing a number of our strategic focus areas of targeted geographical expansion, market share growth and annuity growth,” Sullivan says.
“NGage has a brand, culture and blue chip base complementary to our own and we are excited at the opportunities this presents for clients, staff and shareholders.”
Sullivan says the acquisition is ‘the next strategic step’ in becoming ‘a nationally recognised market leader in enterprise based product, integration and managed services’ following its acquisition early last year of L7.
NGage founder Jarrod Bloomfield will join Cirrus Group’s expanded executive team and will continue to lead and grow the Melbourne business.
Bloomfield says the ‘exciting development’ in NGage’s history will help accelerate its growth to the IT solutions and managed service sector.
NGage, which was founded in 2011, has seen its revenue double annually for the past four years, with a client base including many blue chip clients.
The acquisition sees Cirrus gain immediate access to ‘a number of high quality clients’.
The deal, which is expected to be completed next month, includes $1.5 million in cash and $1 million in Cirrus shares.
Last year Cirrus made it’s first big moves outside of its home base of Western Australia, opening a new office in Canberra as part of its geographic based growth strategy.