CSG will pay six times 2008 ‘Profit Before Tax’, with an initial payment of $20 million, for Change Consulting. The deal also includes an earnout that requires CSG to pay five times the PBT growth between 2008 and 2009, and four times the PBT between 2009 and 2010.
Change provides IT consulting services at enterprise, federal and state government levels. The WA-based company also has offices in Sydney, Melbourne and Canberra.
According to CSG CEO, Denis Mackenzie, the acquisition will give ASG’s applications services division a boost.
“Our exisiting applications services division addresses the SME marketplace and we see potential growth in this sector,” he said.
Mackenzie also said Change’s Sydney office will complement CSG’s Melbourne office and combine for stronger service capabilities on the eastern part of Australia.
“Currently Change Corp has 100 staff, with the majority based in Perth. The acquisition allows us to combine outsourcing, integration and consulting propositions,” he said.
CSG buys WA consulting service for $20M
By Lilia Guan on Dec 19, 2007 3:20PM