Serial acquirer RXP reveals 13th buyout

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Serial acquirer RXP reveals 13th buyout
Ross Fielding

RXP Services has acquired Melbourne consultancy 10collective, to become one of a number of channel firms branching out into digital design.

RXP will pay an initial $3.5 million, plus $2.25 million if 10collective hits certain milestones until 30 September 2016.

This latest deal is one of the “most interesting and exciting acquisitions” RXP has announced to date, said chief executive Ross Fielding.

“Clients of 10collective are consistently impressed with their ability to provide solutions that others are not delivering,” Fielding said.

A number of channel companies have acquired or partnered with digital media and user experience design firms. DWS set up a digital services arm after spending $8.5 million to buy Symplicit. In November last year, Readify bought a minority stake in Sydney company Folk. Bulletproof also signed a number of digital agencies as its first Tier 1 partners last year. 

10collective was formed in 2008 and supplies user interface expertise, digital project delivery and consults on digital strategy.

Fielding told CRN the acquisition will help RXP to manage complete projects without having to turn to partners for the user experience design component of web application work.

Asked whether more acquisitions are coming, he said: "Whilst the opportunity might still be there, and we never say never, we don’t have any specifc plans right now."

RXP has a $25 million acquisition debt facility in place with Westpac that gives headroom for further buyouts.

In August, RXP bought 90-person project management and training provider Engage ViidaCom for an initial $6 million. That followed the buyout of 26-person of business process consulting firm Centrum Systems for $4.15 million in October last year.

The company has seen significant jumps in sales and profit, with revenue up by 42 percent to $78.9 million in the 2015 financial year. Profit after tax was up 13.2 percent to $7.4 million.

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