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Ergo aims for nearly $300m turnover after acquisition

The business is acquiring fellow Irish CSP Asystec in a €25 million (US$28.64 million) deal.

By Antony Savvas

Contributing Editor, The Tech Capital

2 Mins

January 14, 2022 | 1:44 AM GMT

Managed cloud service provider Ergo is acquiring fellow Irish CSP Asystec in a €25 million (US$28.64 million) deal, which is subject to clearance from Ireland’s Competition and Consumer Protection Commission.

The transaction will create a company employing over 500 IT pros across Ireland, the UK and North America. Ergo is a Microsoft Azure cloud services specialist and Asystec’s expertise is in Amazon Web Services delivery.

Asystec has a €40 million (US$45.82 million) annual turnover, and provides multinational customers with VMware, AWS and Dell Technologies solutions. Ergo is a specialist in HP technologies to go with its Microsoft expertise.

The combined revenue of the two is over €150 million (US$171.83 million), and these sales are forecast to grow to €250 million (US$286.39 million) “over the next 3-5 years”, said Ergo.

The number of IT professionals expected to be employed by the larger company will reach “towards 1,000” in the same period, Ergo added.

“This is a transformative deal for the Irish market, the coming together of complementary skills and services from two giants of the Irish IT sector,” said Paul McCann, CEO of Ergo.

Les Byrne, managing director of Asystec, added: “We are becoming part of Ergo at a pivotal moment in the evolution of the IT services sector. Together, we will be able to map and deliver future-proof IT strategies for fast-changing markets, creating new opportunities for our customers and our people.”

Byrne will be joining the board of Ergo along with Aonghus O’Neill, sales director of Asystec. The company’s Limerick headquarters and offices in the UK and the US will extend Ergo’s geographic footprint.

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Antony Savvas

Contributing Editor, The Tech Capital

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