5th Sept 2012. UXC Limited (ASX:UXC) is pleased to announce that its wholly owned subsidiary Red Rock Consulting Pty Ltd has finalised the completion of the acquisition of the business of Oracle integrator Tripoint Online Pty Ltd, including 50 staff, cementing Red Rock as one of the leading local managed service providers covering the Oracle product suite.
Whilst UXC’s press release was issued 5th September, UXC’s ASX filings indicated the transaction was completed in July. Terms of the acquistion were not disclosed however UXC did advise that the transaction was to acquire the business and assets of Tripoint with no associated earn outs. It also advised that the consideration, which was structured to client contract novation, was being paid in cash and was expected to be immediately earnings accretive.
Tripoint became exposed to ABC Learning’s difficulties and was recently fighting attempts by ABC Learning’s liquidator to claw back up to A$2m of alleged
“Preferential Payments” made to Tripoint by ABC shortly before it entered administration.
Tripoint is a leading provider of online managed services solutions for applications through to servers and storage. The company, predominately based around Oracle’s PeopleSoft Application stack, has achieved great success with blue chip organisations. Red Rock will fold the Tripoint business into its existing Managed Services Practice extending the capability to cover a greater breadth of Oracle Applications as well as increasing its depth in the middleware, databases and infrastructure managed services space. The combined managed services team will be led by Gerry Williams, General Manager – Support & Managed Services.
Tripoint founder and Managing Director, Vaughan Stibbard commented: “I am very pleased that Tripoint has joined Red Rock. We have a track record of high quality customer outcomes and focus on the people that deliver the services and our success. The combination of Tripoint PeopleSoft Practice with Red Rock’s extensive Oracle capabilities will enable it to provide a broader range of services to our customers moving forward. I’m confident that the combination of Red Rock’s experience, customer base and resources combined with Tripoint’s managed services maturity and service delivery record will provide the opportunity for continued strong growth moving forward.”
UXC Managing Director, Mr Cris Nicolli commented: “The acquisition meets our disciplined investment criteria, is very much aligned to the UXC strategic direction, and will further enhance the already strong reputation and leadership in market share within the ERP Application market.” “Increasing our leadership position in the Oracle and managed services market is a key strategic direction for UXC, and Red Rock and this investment are core to that strategy. A large attraction for us in proceeding with this deal includes the fact that Tripoint brings a high pedigree in PeopleSoft consulting, combined with a mature service delivery model and strong multi-vendor partnerships that will compliment Red Rock’s current market position.”
The acquisition will be immediately earnings accretive. Consideration has been paid in cash with some remaining client novations determining the final consideration.
ABOUT UXC LIMITED
UXC Limited is an ASX listed Australian business solutions company, and one of the largest Australian owned ICT consultancy firms. UXC services medium to large entities in the private and public sectors across Australia and New Zealand.
UXC provides ICT Solutions in Consulting, Business Applications and Infrastructure that support our customers to design, implement & enhance, and operate & manage their ICT requirements.
UXC strives to be the leading Australasian IT Services and Solutions Company, delivering value, innovation and responsive business outcomes with excellent people.
ABOUT RED ROCK CONSULTING
Red Rock Consulting (Red Rock) is a wholly owned subsidiary of UXC Limited and is the largest independent provider of Oracle consulting and managed services in Australia and New Zealand. Established in 1998, Red Rock provides a complete service continuum around the Oracle stack, including Applications (E-Business Suite, JD Edwards, PeopleSoft & Demantra), Fusion Middleware, ECM & Portals, BI & EPM, Database and Systems from sales, strategy and design, to implementation, project management, licensing, upgrades and managed services.