Australian IT firm Empired acquires Microsoft Dynamics CRM partner eSavvy for $2.2 million

Australian listed IT services company Empired Limited announced today that it has acquired Sydney headquartered Microsoft Dynamics CRM partner eSavvy Pty Ltd for $2.2 million.

Based in Sydney, eSavvy employs 18 staff and has a track record as a successful Dynamics CRM partner. They won a Microsoft's Dynamics Cloud partner of the year award in 2013, as well as Microsoft awards for Australian CRM Partner of the year in 2012 and 2013.

Unlike many such acquisitions of privately held firms, the announcement from Empired contains a few interesting financial details about about eSavvy. The privately held firm has achieved a revenue CAGR of 19% over the 4 years to FY14. eSavvy is expected to generate revenue of approximately $3.4M in FY14 with the transaction valuation based on an EV/EBIT multiple of 3x FY14 forecast. The purchase price will be satisfied in cash (presumably stated in Australian dollars) - with $0.7M paid on completion and the balance to be paid over a three year period as follows; Year 1 $0.5M, Year 2 $0.5M, Year 3 $0.5M.

Adding the eSavvy staff to Empired's CRM practice brings their total CRM consulting staff to 40, according to the announcement.

Commenting on the transaction Empired Managing Director, Mr Russell Baskerville said "This acquisition squarely places Empired as the largest Microsoft Dynamics CRM partner in Australia, a market which is forecast to experience strong growth over the coming years." "This acquisition will continue to build on our strong relationship with Microsoft, provide a logical and practical extension to the existing Microsoft CRM and SharePoint services offered by OBS, as well as the ...