UXC to merge XSI, Integ and UXC Connect

ASX-listed IT integrator, UXC Group (ASX:UXC) plans to merge its subsidiaries – Integ, XSI Data Solutions and UXC Connect into one entity.

The combined entity is set to trade as one from July 1, UXC managing director, Cris Nicolli, told ARN. XSI, Integ and UXC Connect form UXC's Business Solutions Group.

“It will be business as usual for the three businesses until then,” Nicolli said. “All of our 800 staff have been informed about what we’re doing and a lot of them are currently providing input as to what the final organisational structure should be.”

Further details on the management structure and the combined entity’s branding haven’t been decided at this stage, Nicolli said. But the company will be looking to appoint a CEO to run the combined structure.

“Customers are asking for a much more simplified relationship with their vendors and for us to have three companies in the infrastructure space, some which do similar things, doesn’t make a lot of sense,” he said. “Technology is also driving us to have much more integrated approach to our infrastructure offerings rather than having logically separate ones.

“It won’t mean that we lose our competency and our core technologies like Alcatel Lucent and Cisco storage technologies, it’s really around how do we deliver those services and products to customers in more transparent way.”

The company has already commenced the process of bringing the entities together by integrating back office operations and it had also engaged in a lot of strategic planning with the leaders of those three organisations.

“The people we have in the business are very capable leaders and there will be roles for those people in the company,” he said.

In other news, the UXC Business Solutions group has won two government agency contracts with Victorian WorkCover Authority and the Transport Accident Commission.

The financial details of the two contracts have not been disclosed. Fujitsu was the incumbent supplier.

“It’s a very large government agency that has committed such a large and important contract to a local Australian company,” he said. “It’s the largest single contract that we’ve signed within the IT group of UXC.”

The three year contract also comes with two, two year extension options. It involves supplying a broad range of IT managed services and projects such as desktop, server and datacentre support.

“It’s a very substantial contract and we’ve already started work on the contract, which we signed in late November,” he said. “It’s great than an Australian company has got the nod, and it’s a great incentive for other companies, government and commercial to back Australian companies rather than always going to the multinationals.”

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