Melbourne IT has acquired IBM partner and data consultancy firm Infoready for $15.4 million.
Infoready will continue to operate under its own name as the data and analytics arm of Melbourne IT, with the deal expected to be completed by 31 March.
Infoready director Justin Parcell will head up the new data and analytics business, while managing director Tristan Sternson will take a senior leadership role in Melbourne IT’s enterprise services division.
Founded in 2008, Infoready designs and implements data analytics platforms for enterprise customers such as Optus, NAB, Telstra, Origin Energy, IAG and Tennis Australia.
The company has grown to 88 staff across offices in Brisbane, Sydney and Melbourne and ranked number 11 in the 2013 CRN Fast50 for 64 percent revenue growth that year.
CRN revealed in December that IBM had lent five staff members to Infoready to help meet recent growth demands. This time last year, Infoready itself made an acquisition, taking over Melbourne analytics firm Adaptic Solutions and its three data scientists.
Melbourne IT will fund the acquisition by selling off its International Domain Name business, which is expected to bring in $8.1 million to $8.5 million. The difference will be met by additional equity raising.
The domain name business is an indirect channel that sells large volumes of domain names at low margins. Melbourne IT said the division was increasingly becoming a non-core operation as it focuses on growing its new managed solutions business.
Infoready marks Melbourne IT’s third major acquisition in the past 12 months, which includes Uber Global $15 million and Outware Mobile for $21.7 million. Infoready expects to bring in approximately $3.4 million of EBITDA for the 2016 cyclical year.
Melbourne IT executive general manager Peter Wright said the acquisition allows his ASX-listed company to expand further into solutions for corporate and government organisations.
“The strong data and analytics capabilities of InfoReady presents a compelling strategic fit with our enterprise strategy,” he said.
“It perfectly complements our cloud, mobile, security and applications capabilities to deliver a comprehensive and compelling value proposition to the market. We are delighted to announce this acquisition, and making this significant data analytics capability available to our customers.”
Melbourne IT's shares were trading at $2 each before the acquisition was announced.