Melbourne IT, a major Outware Systems stakeholder since June 2015, has now acquired the entire mobile application development company. The complete buyout arrives roughly six months earlier than Melbourne IT originally expected.
The total deal, including each stage of the buyout, was worth AU$57.84 million, which represents a 4.7x multiple to its forecast 2017 EBITDA, Melbourne IT said.
Outware (Melbourne, Australia), founded in 2009, is a rapidly growing mobile application design and development business. Outware's EBITDA grew 40 percent in 2016 vs. 2015. Melbourne IT expects Outware to deliver "a continuation of strong growth" in 2017.
Outware is becomes part of Melbourne IT's Enterprise Services Division, a 300-person organization that's growing more than 20 percent annually. The organization spans Mobile (i.e., Outware), Data and Analytics (fueled by another acquisition called Infoready) and Cloud Services.
Melbourne IT Talent Retention Plan
Outware's three co-founders are taking key roles at Melbourne IT. The names to know include:
- Eytan Lenko becomes practice lead for the mobile effort.
- Danny Gorog will working with customers to ensure they understand the combined capabilities in the Enterprise Services business and are inspired to implement new technologies.
- Gideon Kowadlo will assume responsibility for leveraging "innovation capabilities" across Data, Analytics, Cloud and Mobile.
Melbourne IT has small business and enterprise practices. The small business practice helps companies to establish their online presence, build their social and digital profile online and help drive leads and enquiry. The portfolio includes domain name services, hosting and email services, website and social design. The enterprise practice designs, builds and manages software-enabled cloud and mobile solutions for large corporate and government organizations.
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