IT service provider ASG Group has secured a five year contract with Vodafone Hutchison Australia (VHA) to deliver Corporate IT Support Services.
IT service provider ASG Group has secured a five year contract with Vodafone Hutchison Australia (VHA) to deliver Corporate IT Support Services.
The contract has an option for two one-year extensions and is believed to be worth about $28 million.
In a statement ASG said that within the terms of the contract there is room for ASG to provide additional project services which would increase the value of work with VHA.
ASG Group Chief Officer Sales and Strategic Operations, Murray Rosa was very pleased to announce the contract with VHA.
"This contract represents a significant broadening of our relationship with VHA in terms of revenue generation and services," he said.
"ASG has now secured more than $140 million in new public and private sector contracts across Australia in 2010, confirming our presence as the nation's premier IT service provider," Mr Rosa said.
See full company statement below:
IT services provider ASG Group (ASX:ASZ) today announced it has secured a significant new contract with Vodafone Hutchison Australia (VHA). The contract is to provide services for an initial term of five years with two one-year extension options.
Under the terms of the contract ASG will deliver Corporate IT Support Services.
In addition to the terms of the contract, there is scope for ASG to provide additional project services. Should this occur it would increase the value of work with VHA.
ASG has been providing IT services to Hutchison Telecommunications (Hutchison) since 2006. Hutchison 3G Australia (which owned and operated 3 mobile) merged with Vodafone Australia to form VHA in 2009.
ASG Group Chief Officer Sales and Strategic Operations, Murray Rosa was very pleased to announce the contract with VHA.
"This contract represents a significant broadening of our relationship with VHA in terms of revenue generation and services.
"ASG has been providing services to Hutchison for 3 ½ years and is very pleased to deliver this expanded offering to VHA.
"This contract win was secured against strong competition highlighting the newly merged VHA's satisfaction with ASG's existing service offering and our ability to provide flexible solutions to meet the increased and evolving needs of VHA.
"ASG has now secured more than $140 million in new public and private sector contracts across Australia in 2010, confirming our presence as the nation's premier IT service provider," Mr Rosa said.
VHA Chief Technology Officer, Mr Andy Reeves, said he was pleased to award the new contract to ASG Group.
"ASG has established a strong track record of delivering a comprehensive range of IT services to Hutchison that strengthen and improve our business efficiencies."
ASG Group recently announced three strategic acquisitions. Firstly ASG has consolidated its presence in Victoria and increased its high-end consulting services via the acquisition of Dowling Consulting. Secondly through the acquisition of Courtland Business Solutions, ASG has entered the SAP market, a move that effectively doubles ASG market opportunity and increases ASG's exposure to the booming mining and energy industries. Finally, ASG has significantly strengthened its relationships with blue chip corporate and government clients through the EPS accretive acquisition of Capiotech.
The outlook for ASG's earnings growth remains positive and is underpinned by a project pipeline of qualified contract opportunities of $784 million in FY11.
ASG is confident of continuing this trend of organic and acquisitive earnings growth into FY11 and beyond.
