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IT services firm Ergo expects revenue rise after iSite buy

IT services firm Ergo expects revenue rise after iSite buy

IT services firm Ergo expects revenue rise after iSite buy
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IT services firm Ergo expects revenue rise after iSite buy

Company is predicting acquisition to add up to €8m in additional revenue in first full year.

Dublin-based cloud computing firm Ergo, which bought customer relationship management specialist iSite last year, expects the acquisition to add €8 million in additional revenue.

Ergo, which made an initial payment of €900,000 for iSite in June, saw turnover rise by 2 per cent from €23.4 million to €24 million in the year to the end of March 2015, newly-filed accounts show.

Ergo announced plans to create 120 jobs following its purchase of iSite, whose clients include Independent News and Media, Londis, Fáilte Ireland and Tourism Ireland. The company, which employs more than 200, offers IT solutions from cloud and managed services to software and infrastructure solutions. It was established by Tim Sheehy and former EY Industry Entrepreneur of the Year award winner John Purdy in 1993.

Ergo reported a pretax profit of €507,670 for the 12 months ending March 31st, versus €357,223 a year earlier. Staff costs rose from €8.52 million to €9.17 million over the 12 months under review. Directors’ remuneration increased from €418,114 to €458,292.

Research and development costs at Ergo rose to €311,794 for the year to the end of March 2015, up from €126,929 a year earlier.

Last year Ergo launched a new spin-off business called Ergo Resourcing that provides on-site IT skills for clients. It is headed by former iSite chief executive and founder Dave Muldoon, and is set on becoming a €20 million turnover company within the next three years.

In addition, the group sold its shareholding in the outsourcing firm Fenergo last year to US private equity firm Insight Partners for $75 million. Ergo originally invested $4 million for a 20 per cent stake in Fenergo in late 2013.

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