Victor Tsaccounis (Hubify)
Publicly listed Hubify has acquired managed service provider and telco business Connected Intelligence for $3 million.
Hubify told shareholders the new deal adds $2.6 million in revenue and $870,000 earnings before tax (EBITDA). The acquisition will be funded via $1.7 million cash payment upon completion and $1.3 million deferred payment, settled 24 months from completion.
Founded in 2000 in Sydney, Connected Intelligence has a presence in Melbourne and Brisbane, offering customer’s the full range of managed services including private cloud, back up and disaster recovery, IP telephony, connectivity, cloud and SaaS, as well as managed security.
Connected has about 25 customers billing on average $2.6 million annually, of which 90 per cent was from managed service contracts with an average customer tenure of four years.
Connected shares the same suppliers and platforms as Hubify, which will allow a seamless integration of technologies and systems, Hubify said in a statement.
Connected’s team of expert system and technical engineers are remaining in the business, already signing new employment agreements with Hubify.
Hubify has experience working with Connected having used the business for overflow technical support and pre-sales.
"Connected is a high-quality recurring revenue business with good margins and long-term customers, which is why it’s a great fit for Hubify,” the company's CEO Victor Tsaccounis said. “This latest addition to Hubify further enables the company to execute on its growth strategy in enterprise managed services and supports our growing pipeline of prospects in this space.
“Positively also, organic growth in the core Hubify business remains strong and we continue to work through our acquisition pipeline, and I look forward to updating the market as we continue to close out that pipeline.”
Hubify's acquisitions in the past include companies such as ICNE, Smile and Net Hoster.
