Tier two outsourcer SMS Management and Technology has inked a $22 million deal to acquire the Indicium and Access group of entities.
Indicium is a managed service provider with two core offerings, including business cloud, and infrastructure management.
The deal consists of an up-front payment, along with two additional deferred payments conditional on profit performance.
SMS indicated the acquisition has a raft of benefits for the company, including access to annuity contracts of between 3 and 5 years, along with the ability to deliver on managed services contracts.
Indicium has an annualised revenue of approximately $20 million, and SMS said the deal will be earnings per share accretive during FY14.
SMS chief Tom Stanios said the acquisition supports the company’s move into managed services, particularly in the cloud market.
“Australia is a high growth market for managed services,” he said in a statement. “Over 40 percent of current infrastructure requirements are outsourced under managed service contracts.”