Young Internet upstart Timemac is in the due diligence stage of being acquired by Perth-based mining company Chile Minera after only seven months of operation, following a recent spate of IT purchases by the mining industry.
The economic climate appears to be conducive to Timemac's expansion with Barry Dorr, Timemac's business development director, explaining that "quite a lot of mining companies are approaching IT companies because mining is in a downturn and IT is booming. The mining industry can ride on the back of our success."
Specifically crediting Timemac's innovative whole-of-business approach, Dorr attributes the deal to the company's ability to be "different from other ISPs because we can take businesses to the next stage of e-commerce, rather than just putting the company ad up on a billboard."
Dorr capitalised on the fact that there was a cross-over of people from Timemac and Chile Minera. When the mining company approached the Melbourne-based ISP all Dorr had to do was prove Timemac's ability to advance Chile Minera's ISP facilities, establish its voice over IP technology and develop its software capabilities.
Even though still maturing its own areas of expertise Dorr is confident that Timemac will meet these demands. "Timemac was established with state-of-the-art technology we picked up in America. We are moving into the Chinese and Asian markets and Chile Minera can provide us with the funding to do all the other things we want to do."
Anticipating that due diligence will take another couple of months Dorr is confident of the deal's final success. "Both companies' shareholders have approved the deal to go this far, it is now just a formality."