News: ASG Group wins 8-year Federal Government IT contract

ASG Group (ASX:ASZ) has signed a 8-year database services management deal with Lockheed Martin Australia that further positions the company as a ICT services provider in the Federal Government space.

Under the deal, the company will serve as a sub-contractor to the Department of Defence’s (Defence) Centralised Processing (CP) Project by delivering end-to-end management of all database services.

This deal is expected to make an EBITDA contribution of $1.5 million to $2 million in the 2015 financial year. Contribution in future years is expected to be greater, depending on incremental project activities generated.

It is also an important contributor to the $100 million pipeline of short-listed opportunities presently under negotiation.

ASG will work with Lockheed Martin Australia and other sub-contractor partners on the CP Project, which will consolidate Defence’s infrastructure and applications from within 280 datacentres to 11 domestically and three internationally.

This is expected to improve availability, reliability and security, while creating greater efficiencies, and simplifying service provision.

ASG has delivered EBITDA of $22 million and net profit of $9 million in the 2014 financial year ended 30 June 2014. Revenue was $160.1 million, up $7.6 million from the previous year.

The company has $145 million of revenue locked in for the 2015 financial year.

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