Praxa finally gets to Select with buyout

Praxa finally gets to Select with buyout

It may have been a roundabout way of doing it, but Praxa has finally gotten its hands on Canberra channel stalwart Select Computer Technology.

This month, the company announced it had acquired Select Approach, the company that came into being in May last year when Logical Approach purchased Select Computer Technology, which had gone into administration.

The underbidder on that deal? Praxa.

"We have had an interest in the operation for quite a while," said Phil Reilly, Praxa's general manager for Federal Government business. "They were a very successful operation in Canberra that we both competed and partnered with."

According to Praxa CEO George Sutherland: "The company structure that was put in place by the new owners was extremely impressive and fuelled our desire to try again to acquire it."

Select Approach will operate as a separate entity and will continue to be run by its general manager John Lavett.

"The objective here was to add another arm of the Praxa Group," said Reilly. "Essentially we've bought a group of people."

Importantly, while Praxa is very Microsoft focused, Select has experience in a broader range of technologies, being a Novell NetExpert and a Lotus Business Partner.

"The demarcation will be around technologies and marketing, not customers. So we may very well serve the same customer, but we'd be doing different things," Reilly said.

Economies of scale

While financial terms of the deal were not disclosed, Lavett described the deal as "commercially compelling".

He said it was becoming increasingly important to be a part of a larger, national operation.

"With product margins shrinking it's important you have the economies of scale to compete effectively," he said.

Select will move ahead with its high technical value-add, Lavett said, and in July will launch a security consulting business, concentrating on helping customers put in place secure e-mail and e-commerce environments.

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