ASG acquires IT consultancy Capitotech

ASX-listed ASG Group has acquired IT consulting firm Capiotech for $30 million to cap off a series of planned growth initiatives in time for the next financial year. 

ASG said Capiotech - which specialises in corporate analytics - will deliver opportunities in managed services, particularly in business intelligence and enterprise performance management.

Capiotech's partners include Oracle and Microsoft as well as CXO-Cockpit which provides a dashboard for Hyperion Financial Management, and SPSS provider of predictive analytics software and solutions.

Capiotech has 90 employees in Sydney, Melbourne and Brisbane, strengthening WA-based ASG's presence on the east coast.

Capiotech customers include Qantas, ANZ Bank, Commonwealth Bank, Macquarie Group, NAB, Vodafone, Origin Energy, CSL and the Queensland Department of Transport and Main Roads.

ASG said the acquisition completes a program of "growth initiatives" for ASG to deliver significant growth in earnings in the financial year 2011.

The Capiotech acquisition is forecast to deliver FY11 underlying earnings per share (EPS) accretion of 15 percent.

ASG recently acquired IT consulting group Dowling Consulting and SAP software provider Courtland Business Solutions which saw the Oracle-led ASG enter the SAP market for the first time.

ASG chief executive officer Geoff Lewis said the company "set out to build our capabilities in Business Intelligence, SAP and consulting and we've now delivered on this."

Lewis said the company has  "invested heavily" in its next wave of contract growth with major wins in recent months with customers such as the Department of Prime Minister & Cabinet, Western Power and the West Australian Department of Education - totaling $112 million in new contracts since January 2010.

The two companies partnered for large contracts in the past such as the five year contract with Qantas announced last year.

"We have a track record of working successfully with ASG in the past and believe there is a significant opportunity for the future growth of our businesses together," said Capiotech chief executive officer, Steve Pennisi.