Perth-based IT company Empired has announced its acquisition of fellow firm Conducive for a total purchase price of $7.95 million.
The price is four times Conducive's forecast earnings before interest and tax for the financial year ending June 2013.
Conducive is forecast to bring in $9.5 million in revenue for the 2013 financial year, which would provide a welcome boost to Empired’s turnover – in 2011 its revenue was $39.7 million.
Empired managing director Russell Baskerville said the acquisition expanded the firm’s capability and broadened the scope of contracts Empired could now bid for.
“It enhances our value proposition to existing clients and will allow Empired to capture a larger proportion of their planned budget,” Mr Baskerville said.
He said the company would also be able to expand the services it could provide to existing customers, especially those in the energy and resources sectors.
Conducive managing director Branden Dekenah said the two companies were a good fit and would provide great value for shareholders.
Shares in Empired were stable at 24 cents each immediately following the announcement.
