The proposed merger of memory specialist Hypertec with the publicly listed internet access company Sirius should secure the NetComm and Banksia brands at a time when the local modem market is suffering from falling prices.
According to Hypertec executive chairman Geoff O'Reilly, "We perceive NetComm and Banksia as very strong brands and very good products, so as far as the channel is concerned, there should be no interruption."
At this stage, according to O'Reilly, the companies have signed an unbinding heads of agreement. "We are expecting to finalise the deal this month, subject to regulatory and shareholder approval, and a merger would be expected to be completed by the end of June."
O'Reilly described memory and modem as complementary product lines. "We've had a close association with (the former) NetComm over the years, and both of the markets are driven by the PC business. It's all about markets, marketing and distribution, and it all goes down the same distribution channel, reseller community and to the same end users," he explained.
O'Reilly signaled Hypertec's intention to take the products into its overseas markets. "The Sirius brands have tended to be confined to the Australian market and we've long been interested in them for the economies of scale in distribution. We understand the dynamics of changing technologies, and we can comfortably add the product lines and some new products it has in the starting gate," he said. "We've defied a lot of people's observations by continuing to run a successful core business in memory despite dramatic technology changes and collapsing prices," he added.