ASG buys another SAP partner

IT services provider ASG has acquired SAP consulting partner Progress Pacific to increase its footprint in the SAP space.

The purchase price is based on a multiple of five times Progess' average earnings before interest and tax for 2011 and 2012 financial years, capped at $12 million.

Consideration will be in the form of 50 percent cash and 50 percent scrip payable across two installments - 25 percent up front and the outstanding 75 percent to be paid in September 2012.

Progress Pacific is a Sydney and Melbourne based SAP partner with 40 employees and customers such as Broadcast Australia, Device Technologies, IAG and ING.

ASG general manager sales and delivery, Murray Rosa, said the acquisition sees "ASG expanding its SAP presence in key growth markets on the east coast where there is an opportunity."

"Progress Pacfic together with the recently acquired Courtland Business Solutions in WA sets the spring board for ASG to grow its SAP business throughout Australia".

ASG acquired SAP software provider Courtland Business Solutions in April which saw the Oracle-led ASG enter the SAP market for the first time.

Further reading:

ASG acquires IT consultancy Capitotech

ASG profits up, revenue down

ASG acquires SAP partner Courtland