Data, voice and video service provider Allied Technologies Group has entered into a conditional agreement to buy Melbourne software services group TUSC Computer Systems for an estimated $6.7 million.
Allied Technologies, an ASX-listed contractor specialising in IT services for the military and government departments, has claimed that the acquisition of infrastructure management provider TUSC would complement Allied and boost revenue.
The companies would be merged, Allied Technologies said in a statement.
TUSC numbered AGL, Telstra, United Energy and City West Water among its mainly utility, telecommunications and enterprise customers, the company said.
Buying TUSC would give Allied Technologies a strong Victorian presence, some back office cost savings and cross-selling opportunities, the company said.
"Allied is dominant in secure voice, data, video and web communications. TUSC expands [its] geographic footprint and customer base. [There are] significant merger benefits not factored into numbers," the company said.
Allied Technologies would maintain TUSC's existing management team. The acquisition was expected to prove profitable early. Existing contracts and barriers to other entrants would help that along, the company said.
TUSC was founded in 1981 by chairman John Gwyther. He would join Allied Technologies' board, the company said.
TUSC has offices in Melbourne, Sydney, Canberra and Adelaide. It employed about 67 staff and expected to earn $15 million with an EBITDA of $1.8 million for the 2004-05 fiscal year, the company said.
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