The long-awaited acquisition of the privately owned systems integrator and VAR, Integrand Solutions (IS), has been completed, and, surprise surprise, the buyer is US giant Avnet Corporation. Coinciding with the sale, the big Compaq reseller has also signed up to Hewlett-Packard.
The Avnet deal follows a third year of 50 per cent growth, with revenues for the 1999 fiscal year exceeding $50 million. IS founder and former owner, David Hayman, said that while the financial details of the sale were confidential, he was very happy with the deal.
As a result of the buyout of IS, the previously fledgling Avnet Computer Marketing Group in Australia has instantly become the largest Compaq reseller in the enterprise space, and will be known as Avnet Integrand.
Effective immediately, Colin McKenna is managing director of Avnet Integrand. According to McKenna, the management and staff of IS have all been retained, with Hayman taking the role of operations director, and the rest of the IS management forming the core of the new entity. "Avnet gives us access to skills with which we can develop new markets, especially in the e-commerce area," McKenna said.
Meanwhile, Avnet Computer stalwart and managing director of Avnet Hall-Mark, Ian Ramsay, who was instrumental in establishing the Avnet presence in Australia, claims to be on track with the "value proposition". He said the VAR business Avnet Computer will merge with Avnet Integrand early next year. "We have a lot of irons in the fire," he said.
And McKenna has revealed that Avnet Integrand has also signed a direct reseller deal with Hewlett-Packard in the enterprise space, as well as becoming a tiered reseller in the workgroup market.
With the financial muscle and technical support of Avnet behind them, McKenna is "excited about the prospects of further growth, and we expect to be doing $65 million this year".
He added that Hayman was keen to stay on with the company he founded, and that Avnet was keen to have him. A major part of Hayman's role will be developing the rental and refurbished market.
McKenna will report to the recently appointed senior vice president of Avnet Computer Marketing Group Asia Pacific. His name - Ned Kelly.