Listed integrator signs $46m govt contract

Managed services provider Empired has fended off fierce competition from rivalling companies to sign a $46 million with Main Roads Western Australia (MRWA).

The company went up against rivals ASG, Kinetic IT, Amcom and SMS-owned Birchman Group to renew the agreement, which has the potential to run for five years.

It is the second major contract win for Empired in two months after the company signed a $50 million deal with an undisclosed "major resources company".

Managing director Russell Baskerville told CRN that Empired was the first incumbent to be re-signed for infrastructure support services since 1996.

"There were a couple of things that put us ahead, but the experience and the understanding of Main Roads' business was key."

Baskerville added the experience Empired will gain from this contract – which involves managing the fibre optic network behind Western Australia's street lights – will put the company in a competitive position to win similar deals in different states.

"Main Roads have lots of other areas within their IP department. We certainly have identified a range of opportunities that we consider ourselves to have an advantage and we'll engage in those opportunities," Baskerville told CRN.

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The contract has a three-year term with a two-year renewal option. The previous deal was worth $25 million.

"It's significantly larger than the previous contract. Main Roads is starting to rely on our systems for their corporate needs and their operational road networks. It is the underlying network that every traffic light system in Western Australia relies on."

Under the agreement, Empired will manage the second-largest fibre optic network in Western Australia, a 'range' of real time SCADA systems, two data centres housing more than 750 servers and more than 2,200 workplace devices.

Signing $96 million in new contracts within two months will continue to drive Empired's expansion. Baskerville said Empired was planning to acquire another business in the "IP" industry within the next 12 months.

"We'll undertake another transaction within the next 12 months. It will be in the IP industry. Empired has invested heavily in systems to allow it to grow.

"One of the focuses for us is to bolster our East Coast presence; Sydney and Brisbane are very attractive for us. We're looking for reasonable-sized businesses sized between 50-100 staff."

[Related: ASG signs $86m in three months]

In September, Empired acquired OBS in for $15 million. The acquisition added 150 additional staff to its existing 300 footprint.