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Sydney-based cloud tech investor MOQ (ASX: MOQ) has entered a binding agreement to acquire data analytics and training specialist Wardy IT Solutions.
The deal includes an upfront purchase price of $7.5 million for cash and shares along with a potential earn-out of up to $6 million.
Founded in Brisbane by Peter Ward (pictured) in 2004, Wardy IT is a market-leading provider of Microsoft specialist services and solutions in data platforms and data analytics.
The company has four offices and 60 staff across Australia and New Zealand and is a multi award-winning Australian Microsoft Gold partner.
Ward, who last year won the technology category at the Australian Young Entrepreneur Awards, will become MOQ's general manager for data analytics after the acquisition.
MOQ expects the acquisition to be immediately earnings accretive, given Wardy's FY19 results of $14.2 million in revenue and $1.5 million EBIT.
"The acquisition of Wardy IT is an excellent strategic fit for MOQ and aligns with our vision to develop, build and acquire cloud-centric complementary technology businesses," says MOQ CEO Joe D'Addio.
"We are pleased to welcome the Wardy IT team and their market-leading expertise in data architecture, data optimisation and data management capabilities on the Microsoft platform.
"Wardy IT has a solid existing revenue stream, which features an almost equal blend of specialist professional services, and high-value recurring services and it is anticipated that these services will be leveraged to provide sustainable growth for MOQ in the coming years."
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The owners of Wardy IT, which is predominantly Ward himself, will become significant shareholders in MOQ with a 9.1 per cent stake.
"Wardy IT has actively partnered with the MOQ team on a number of projects over the last five years and we are all excited by the opportunity to become part of the MOQ business," says Ward.
"We anticipate being able to significantly strengthen our cloud practice and grow the combined Data Platform and Data Analytics segment, while continuing to deliver the high quality of service to which our clients are accustomed."
Microsoft Australia managing director Steven Worrall looks forward to extending its relationship with MOQ through the acquisition of Wardy IT.
"We have had a long and mutually beneficial partnership with Wardy IT they have three Gold level partnerships in Data Platforms, Data Analytics and Cloud Platforms and an exceptional reputation," he says.
"The combined expertise of the two companies will be of great value to small and medium sized businesses that rely on Microsoft solutions to run their operations efficiently and effectively."
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