Menu
Rhipe acquires Queensland-based Microsoft Dynamics partner

Rhipe acquires Queensland-based Microsoft Dynamics partner

Deal could be worth up to $8 million

Dominic O’Hanlon (CEO - Rhipe)

Dominic O’Hanlon (CEO - Rhipe)

Rhipe has entered into a binding agreement to acquire Queensland-based Microsoft partner Dynamics Business IT Solutions (DBITS) in a $4.5 million deal, potentially rising to $8 million.

The privately-owned business operates as an IT services, integration and support business provider with a focus on Microsoft Dynamics 365 Business Central.

The $4.5 million consideration includes $3 million payable in cash "funded by existing cash resources" and $1.5 million payable through Rhipe ordinary shares.

A further deferred consideration of up to $3.5 million could be payable over the next two years post acquisition, comprising of cash and shares, contingent on achieving financial targets "in excess of the expected contribution".

The acquisition is part of the distributor's strategy to provide the "best platform", enablement and 24x7 support services around key Microsoft technologies.

Furthermore, the acquisition will add implementation and support services to Rhipe's capabilities allowing it to broaden its services across the market.

Rhipe partners, who have been purchasing Dynamics and Dynamics 365 licenses from the distributor, will now also have access to consulting services and support in what the company described as a "reseller friendly manner".

"Rhipe believes that the acquisition of DBITS also cements the Company’s position with Microsoft as a strategic, high value-add distribution partner for Microsoft’s most important cloud product subscriptions in the Asia Pacific region," the company told shareholders on 30 January.

Rhipe will further invest in its Dynamics activities immediately post acquisition aimed at accelerating growth in this area.

Meanwhile, DBITS is expected to contribute circa $1 million earnings (EBITDA) in FY20 before any synergies and additional investment in the business' go forward Dynamics business.

The acquisition is expected to be completed in February.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftDynamicsRhipe

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments