Irish IT firm Ergo buys Asystec in €25m deal

Irish IT services company Ergo is acquiring Aystec in a €25m deal, subject to approval from the Competition and Consumer Protection Commission.

The deal effectively creates the largest privately-owned IT services company in Ireland with more than 500 IT professionals across Ireland, the UK and North America.

The acquisition aligns with Ergo’s strategy to build on public, private and hybrid cloud capabilities. Combining its deep knowledge of Microsoft Azure with Asystec’s expertise in Amazon Web Services (AWS) will enhance the assessment, design and deployment of hyperconverged cloud platforms, data analytics solutions, and a suite of transformation services. 

“We are hugely excited to be taking our business on the next stage of its journey, becoming part of Ergo at such a pivotal moment in the evolution of the IT services sector”

“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.

“We welcome Asystec onboard, knowing that natural synergies in our customer-centric focus will make for a perfect cultural as well as technical fit.”

Bursting through the clouds

Asystec took less than a decade to grow into a €40m company, providing multinational customers with market-leading expertise in VMware, AWS, and Dell Technologies, including Dell EMC storage. By targeting an acquisition that complements existing expertise in Microsoft and HP technologies, Ergo is scaling up and expanding its role as an enterprise-class service provider of cloud and managed services.

The managing director of Asystec Les 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 US will extend Ergo’s geographic footprint internationally, as well as across the island of Ireland.

“We are hugely excited to be taking our business on the next stage of its journey, becoming part of Ergo at such a pivotal moment in the evolution of the IT services sector,” said Byrne.

“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.”

Asystec is Ergo’s fourth acquisition since 2010. The first was CDSoft, deepening its Microsoft expertise around collaboration tools, followed by iSite in 2015, which expanded its CRM practice. The next year saw Micromail brought into the group, one of the largest Microsoft Licensing Solutions Providers in Ireland.    

Paul McCann, who took over the role of Ergo CEO in September, said he is staying true to his pledge to open up a new chapter in the company’s history at what he believes is a significant moment in the Irish market.

“The country is on the cusp of a period of economic growth and I want to make sure that Ergo is part of it. Supplementing our leading-edge technology with Asystec’s, we believe we have the best IT services portfolio in the country and can be a key enabler, helping other businesses to grow and prosper,” he said. 

Main image at top: Asystec managing director Les Byrne with new Ergo CEO Paul McCann

John Kennedy
Award-winning editor John Kennedy is one of Ireland's most experienced business and technology journalists.