ASG shares rise on Clough contract

19/08/2013 - 11:32

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ASG Group managing director Geoff Lewis.

Technology group ASG has announced a new strategic partnership with engineering and construction contractor Clough.

ASG said the contract, which will include the provision of cloud, or ‘new world’, computing services among a suite of other IT services, would generate between $7 million and $9 million in revenue each year.

“Our strategic partnership with Clough encapsulates our mutual vision for how IT services are delivered now and in the future,” ASG managing director Geoff Lewis said.

“Our partnership involves a comprehensive transformation designed to modernise Clough’s IT systems and transition the company to new world computing aligned with their global business objectives.”

Clough managing director Kevin Gallagher said the partnership would transform the company's IT function from managing hardware and systems to providing information and technology solutions for employees and clients.

"This will result in significant cost savings while providing high-value solutions to many of the technical challenges we face across our business."

The contract is part of $76 million in new deals ASG has signed this financial year, including a five-year, $11.3 million deal with the Department of Housing and a $14.8 million contract with the Department of Education.

Mr Lewis said ASG was close to securing additional contracts as exclusive negotiations progress.

At 11:15AM, WST, ASG shares were up 13 per cent, at 43.5 cents. 

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