IT services company Ergo acquires Asystec for 25 million euros

IT services company Ergo made its biggest acquisition to date, acquiring Limerick-based Asystec for € 25 million.

The transaction, which is subject to the approval of the Competition and Consumer Protection Commission, will create one of the largest private Irish IT services companies in the Republic, with more than 500 IT professionals and annual sales of over 150 million euros.

Ergo chief executive Paul McCann told the Irish Times the group intends to increase revenue to € 250m over the next three to five years, with a workforce expected reach nearly 1,000.

“This is a pretty big acquisition and it’s good news for everyone, including our suppliers,” said Mr. McCann. “It gives us more skills and access to new customers, a greater range of services, makes us more robust and, after 30 years of existence, it will help ensure that we will be there for at least 30 more.” “

Ergo, which was founded by John Purdy and Tim Sheehy in 1993, has made three previous acquisitions, having purchased CDSoft, iSite and Micromail. The deal for Asystec overshadows all of this.

Founded by Les Byrne in Limerick in 2011, Asystec employs 50 people and generates a turnover of 40 million euros.

With the national IT services industry going through a period of rapid consolidation, Mr McCann said Ergo was open to further acquisitions.

Mr McCann, who increased revenue from 41 million euros to 115.7 million euros while he was managing partner at accounting firm Grant Thornton, said mergers and acquisitions are part of Ergo’s future growth strategy, although he stressed that this was not the end all “.

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