Sydney-based IT provider Hal Group has expanded in Melbourne with the acquisition of BusinessWorks for $1.3 million.
The cash deal values BusinessWorks at 3.75x EBITDA and will settle "within the next couple of days".
BusinessWorks is a 20-year-old reseller that provides IT support services and solutions for small-to-medium sized businesses in Melbourne’s eastern suburbs. It boasts more than 90 clients and partners with HP, Microsoft, Brother and many others.
Hal Group was reborn in 2015 when Hal Data Services acquired Computer Care Australia from Leading Edge Group.
Hal itself is owned by ASX-listed Consolidated Operations Group (COG), previously known as Armidale Investment Corporation, which owns a third of Leading Edge Group.
The acquisition of BusinessWorks will bring talent and resources to COG’s core business of equipment finance broking and aggregation, according to a company statement.
“This is a good purchase in terms of gaining critical mass and a presence in Victoria,” COG managing director Cameron McCullagh said.
“We do not plan to purchase any other IT services companies as we are focused on what is currently a significant pipeline of asset finance broker purchases.”
Hal Group offers managed services, professional services and hardware and software sales to 80 clients across Australia.
COG's other investments include QPF Finance Group, Linx Finance Australia and TL Rentals.