PS&C Ltd (ASX:PSZ) has added to its information and communications technology (ICT) capabilities through the acquisition of ACT-based NTH Consulting Pty Ltd.
The acquisition complements PS&C’s existing business and growth strategy and provides tier 1 government coverage outside its existing customer base.
IT services provider
NTH is an IT services provider with a focus on digital transformation, cybersecurity and SIAM, and has an established and proven Canberra sales team.
PSZ managing director and CEO Glenn Fielding said: “The acquisition of NTH Consulting extends our footprint into a new region.
“It gives us access to the Federal and ACT governments where cybersecurity and governance are becoming increasingly important issues.
“This platform combined with our existing capabilities and the outstanding growth potential of NTH makes NTH a strong fit for PSZ.”
Growth expected from government sector
The two companies together expect to generate accelerated growth from the government sector.
PSZ expects the acquisition will allow it to extend its capabilities across strategy and governance, cybersecurity, technology and project services, service integration and management.
Forecasts developed in consultation with NTH management have NTH generating revenues of up to $1.6 million for fiscal 2018, increasing to $7.5 million to $8.5 million in fiscal 2019.
The consideration for the acquisition is four times near-term EBIT of $250,000 plus an earnout using a mixture of PSZ scrip and cash.
READ: PS&C's shares rally 10% on proposed acquisition of IT consulting group Seisma
In early April PSZ announced its acquisition of business and technology consulting company Seisma Pty Ltd.
Seisma is a specialist technology services company with more than 120 employees, possessing a strong footprint across the financial services, communications and utility sectors.
It is expected that Seisma will generate revenues of $21 million in fiscal 2018, increasing by around 30% to $28 million in fiscal 2019.