Hyro acquires Synergy Plus

ASX-listed digital services company Hyro has signed a memorandum of understanding to acquire Melbourne-based technology and infrastructure company Synergy Plus.

Synergy – a Tier 1 IBM partner – provides infrastructure, development, integration and support services for a range of top 200 companies across Australia.

The company’s base of clients was complementary to Hyro’s existing client base with limited overlap, Hyro CEO Joe Calavassy said in a statement to the ASX.

“By acquiring Synergy, Hyro will be adding well-known names such as Coles-Myer, ANZ Bank, NAB, Berri, Qantas, Toyota, Heinz and VicRoads, amongst others as prospective users of Hyro’s digital services offering,” he said.

“As Synergy’s services dovetail neatly into the Hyro Digital Services offering, the acquisition will provide significant competitive advantage for the merged business,” he added.

Synergy employs 140 staff in offices in Melbourne, Sydney, Adelaide and Canberra.

The Synergy business would report annual revenue of around $50 million this financial year with EBITDA of about $6 million, according to initial financial estimates.

The acquisition price, a combination of cash and stock, was subject to due diligence and shareholder approval and would represent about 30 percent of the combined companies, Hyro said.

Synergy chairman Victor Aghtan was not available for comment at press time.

Synergy lost its head Perry Blackney in February this year after a disagreement with board members over the timing of a public listing for the organisation.