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iSite Acquisition Triggers New Phase of Ergo Expansion

iSite Acquisition Triggers New Phase of Ergo Expansion

iSite Acquisition Triggers New Phase of Ergo Expansion
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iSite Acquisition Triggers New Phase of Ergo Expansion

120 Extra Jobs to be Created Over Next 2 Years

Ergo has acquired leading Customer Relationship Management (CRM) specialist and IT resource provider iSite for an undisclosed sum, consolidating its position as one of Ireland’s leading IT services companies and providing building blocks for a new phase of growth.

The acquisition will see Ergo grow its revenue by 30 per cent in the next year and increase employee numbers from 200 to 330. On top of this, Ergo plans to create 120 extra jobs within two years through additional growth. A new spin-off firm, Ergo Resourcing Ltd, will be launched, headed up by former CEO of iSite Dave Muldoon, and targeted to become a €20m turnover company within the next three years.

The acquisition fulfils two strategic ambitions for Ergo: to expand its Microsoft Dynamics CRM practice, and to provide more resources to companies looking to outsource IT positions in the face of ongoing skills shortages.

iSite founder Dave Muldoon & Chief Executive Officer John Purdy

Pictured L to R: iSite Founder Dave Muldoon and Ergo Chief Executive John Purdy

John Purdy, Chief Executive of Ergo, commented: “We are delighted to bring iSite into the Ergo fold – there will be no change in circumstances for existing iSite customers because the whole team will be joining Ergo, creating a bigger, stronger entity with an ever-increasing breadth of skills and expertise.”

Dave Muldoon, founder of iSite said “With Ergo we immediately move up the next level. We can attract more talent, offer customers more depth and our people have even stronger career paths. It’s very exciting for everyone”.

Ergo has been supported by the Department of Jobs through Enterprise Ireland .The Minister for Jobs, Enterprise and Innovation, Richard Bruton TD said: “At the heart of our Action Plan for Jobs is creating a powerful engine of Irish enterprise alongside the strong multinational sector we have built up. Ergo is a great example of the type of innovative, fast-growing Irish companies we are trying to develop. Today’s announcement that it is expanding further, both through acquisition and organic growth, and creating 120 additional jobs over the next two years is great news. I congratulate John and Dave on today’s announcement and wish them every success in the future”.

The acquisition comes at a time when the 2015 release of Microsoft Dynamics CRM is expected to become a significant addition to Office 365, the Microsoft suite of cloud-based applications. Ergo has been a leading player in the success of Office 365, responsible for around 60 per cent of the seats sold on the island.

The launch of Ergo Resourcing is a natural next step for a business that Ergo has been growing steadily for many years, providing on-site skills for clients that enable internal IT people to concentrate on adding more value while Ergo resources take care of “keeping the lights on” or working on specific projects to augment the clients resource pool. The iSite acquisition accelerates the market opportunity, adding high profile customers Vodafone to the Ergo books.

Customers of iSite’s Dynamics CRM practice include Independent News & Media, Londis, Fáilte Ireland, and Tourism Ireland.

John Purdy, who won the prestigious EY Industry Entrepreneur of The Year 2014 award, is focused on aligning Ergo services to the modern needs of modern businesses. “At a time when companies are emerging out of recession, the demands are on Chief Information Officers to deliver more value. Complementing IT skills with companies like Ergo will be part of that agenda, along with a move to more managed services and cloud solutions like Office 365,” he said.

Ergo is also focused on expanding its business outside of Ireland. The firm already provides Managed Print and Managed Services for clients in the UK and its FlowForma workflow product has a growing footprint in the UK public sector. “Nearly 100 per cent of our revenue was generated in Ireland in 2008; that has now fallen to 70 per cent and it’s a trend we are looking to accelerate over the coming years,” said Purdy.

Ergo Timeline:

• 1993 – Established by John Purdy and Tim Sheehy as a Printer Specialist Company
• 1996 – Begins offering document management services
• 1998 – Becomes the first Managed Print Service provider in Ireland when it wins a contract with Microsoft
• 2000 – Expands into professional services and software development
• 2004 – Network Services division is established
• 2009 – Ergo spins off Fenergo – an award-winning provider of Client Lifecycle Management software
• 2010 – Acquires CDSoft
• 2011 – With 146 employees and revenues of €28m, Ergo wins Deloitte Best Managed Company & GPTW awards
• 2012 – Ergo announces 30 new jobs
• 2013 – Ergo wins Microsoft Partner of the Year for the third time in four years
• 2014 – Ergo wins Microsoft Cloud Partner of the Year; John Purdy awarded EY Entrepreneur of the Year 2014
• 2015 – Ergo named Best Place to Work in IT at ICT Tech Excellence Awards

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