DWS ACQUISITION TAPS INTO $40M REVENUE POOL
6 August 2015,
IT services company DWS Limited is set to acquire a 75 per cent stake in Phoenix IT & T Consulting for $19.5 million.
The deal will allow DWS to capitalise on more than $40 million annual revenue, diversified across industries including telecommunications, financial services, utilities and transport.
Phoenix will operate as a separate division of the business under the same name, while still leveraging DWS' national footprint and client base.
DWS CEO Danny Wallis says the strategic acquisition will allow the company to expand its portfolio of business solutions.
"The acquisition of Phoenix is a further demonstration of our strategy of adding to the breadth and depth of our services offering so we can deliver integrated solutions to clients," Wallis says.
"Phoenix provides us with a range of new services that complement DWS' IT focus and longstanding relationships with a number of new blue-chip customers."
Phoenix employs more than 200 staff across offices in Sydney and Melbourne. Founders Hayden Kelly and Andrew Henderson will retain the remaining shares in the company.
Henderson says Phoenix's specialist services areas of productivity and consulting will broaden DWS' offering.
"Both Hayden and I believe that DWS is an exellent fit for Phoenix in terms of our respective customer bases and service offerings," he says.
"The combined business will have the scale and breadth of resources to offer compelling value added solutions to our clients."
DWS has irrevocable rights to purchase the remaining shares based on retention of customer contracts through FY16. The price will be $6.5 million.
The acquisition is expected to be completed by the end of August.