Dublin-based IT company Ergo has announced its biggest deal to date by agreeing to buy Limerick-based firm Asystec for €25m.
The acquisition, which is subject to clearance by the Competition and Consumer Protection Commission, would create the largest privately-owned Irish IT services company in the country with over 500 IT professionals across Ireland, the UK and North America.
“People are really happy about the fact that it’s an Irish company buying an Irish company. It’s not a sell out to another international company,” Ergo CEO Paul McCann told the.
Asystec provides data storage services and other IT solutions. The firm has 50 employees and revenues of €40m.
“What we do is not what they do. So, by putting the two companies together, we get access to their clients and they get access to ours but we’re not eating into each other’s lunch,” Mr McCann said.
Asystec is Ergo’s fourth Irish IT firm acquisition since 2010.
Although Ergo has offices in Cork, Asystec’s offices in Limerick and in the UK will help with growing Ergo’s geographical footprint.
“The country is on the cusp of a period of economic growth and I want to make sure that Ergo is part of it. Supplementing our leading-edge technology with Asystec’s, we believe we have the best IT services portfolio in the country and can be a key enabler, helping other businesses to grow and prosper,” said Mr McCann.
Ergo and its group of IT firms generate annual revenues of €150m, with that set to rise to €250m in the next three-to-five years.