DWS ACQUISITION TAPS INTO $40M REVENUE POOL

DWS ACQUISITION TAPS INTO $40M REVENUE POOL

IT services company DWS Limited is set to acquire a 75 per cent stake in Phoenix IT & T Consulting for $19.5 million.

The deal will allow DWS to capitalise on more than $40 million annual revenue, diversified across industries including telecommunications, financial services, utilities and transport.

Phoenix will operate as a separate division of the business under the same name, while still leveraging DWS' national footprint and client base.

DWS CEO Danny Wallis says the strategic acquisition will allow the company to expand its portfolio of business solutions.

"The acquisition of Phoenix is a further demonstration of our strategy of adding to the breadth and depth of our services offering so we can deliver integrated solutions to clients," Wallis says.

"Phoenix provides us with a range of new services that complement DWS' IT focus and longstanding relationships with a number of new blue-chip customers."

Phoenix employs more than 200 staff across offices in Sydney and Melbourne. Founders Hayden Kelly and Andrew Henderson will retain the remaining shares in the company.

Henderson says Phoenix's specialist services areas of productivity and consulting will broaden DWS' offering.

"Both Hayden and I believe that DWS is an exellent fit for Phoenix in terms of our respective customer bases and service offerings," he says.

"The combined business will have the scale and breadth of resources to offer compelling value added solutions to our clients."

DWS has irrevocable rights to purchase the remaining shares based on retention of customer contracts through FY16. The price will be $6.5 million.

The acquisition is expected to be completed by the end of August.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Four ways businesses can use artificial intelligence to triumph in 2022
Partner Content
The last two years have delivered major disruption to the technology industry and broad...
PROS
Advertisement

Related Stories

QLD Premier confirms borders to reopen four days early

QLD Premier confirms borders to reopen four days early

With Queensland health authorities expecting the 80 per cent double...

Douugh builds on momentum with $8 million capital raise

Douugh builds on momentum with $8 million capital raise

Digital bank Douugh (ASX: DOU) has announced an $8 million capital ...

Cobram Estate Olives to raise $51m for US expansion, Australian mill upgrade

Cobram Estate Olives to raise $51m for US expansion, Australian mill upgrade

Cobram Estate Olives (ASX: CBO) plans to ramp up local olive oil pr...

Cyber weekend sales make November the biggest month in Australian online shopping history

Cyber weekend sales make November the biggest month in Australian online shopping history

November was the biggest month in Australian online shopping histor...