Electricity provider Synergy signs ASG Group for managed services

Managed services deal is for three years

Western Australia gas and electricity provider Synergy has signed a $15 million managed services IT contract with ASG Group (ASX: ASZ).

Under the three-year contract, ASG Group will help Synergy migrate to a cloud services model. The two companies are also in discussions about consolidating Synergy’s data centre footprint.

ASG Group won the contract following the amalgamation of electricity generator Verve Energy and Synergy in April 2013. The IT company had been working with Verve Energy since 2010.

By merging the managed services contract into one contract, Synergy will reduce its costs and improve service outcomes.

“ASG are a valued part of Synergy’s ICT team and have consistently delivered high quality services. We are pleased to be renewing what was a strong partnership,” Synergy CIO Alex Jones said in a statement.

ASG Group also provides managed services to Western Power, United Energy and Multi Gas.

According to a statement, the IT services firm is in exclusive negotiations for opportunities in excess of $80 million, all of which are expected to be concluded with the next three months.

ASG Group posted a slight revenue increase of $80.1 million for the first half of FY1515, up from $79 million during the same period in 2014.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was $11.1 million, up from $10.7 million in the first half of 2014.

This EBITDA included a $1 million profit following the sale of its Perth data centre to Vocus Communications (ASX: VOC) for $11.7 million in August 2014.

Follow Hamish Barwick on Twitter: @HamishBarwick

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