ASG buys A-DB for $3M

A-DB opened its first Adelaide office in 1983 and then in Brisbane in 1997. It employs 55 employees and has revenue of around $6 million for FY2007.

Consideration for the acquisition is $3 million, comprising 30 percent in cash and 70 percent in ASG shares at an issue price of $1.20 a share. The purchase price represents a forecast FY09 EBIT multiple of three times.

ASG managing director Geoff Lewis said the acquisition gives an opportunity to launch the service provider in the defence sector where A-DB has an established presence.

“It now has a truly national network with offices in every mainland capital city and in Canberra,” he said.

The addition of A-DB will also allow ASG to capture synergies and scale benefits, with the planned immediate integration of the business into ASG's national network. Existing clients include Queensland Health, Queensland Rail, BAE Systems, Santos and Bond University, claimed Lewis.

“The A-DB operation will also assist ASG in serving existing Queensland-based clients such as Virgin Blue,” he said.

He believes A-DB will provide a strong platform from which the company can pursue numerous additional contract opportunities in both Queensland and South Australia.

“A-DB has a great blend of government and blue-chip corporate clients, with presence in education, health, defence and financial services.”

Lewis said the key services offered by A-DB include; Oracle and Microsoft database administration; Application Development - Oracle, Java, .NET, SOA; Defence systems consulting and support; Specialist IT recruitment; Certified Oracle, SUN and HP education and Oracle Software licensing.