Pictured (L-R) are: iSite Founder Dave Muldoon and Ergo Chief Executive John Purdy
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.
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.
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.
