ComputerCorp has acquired Tasmanian IT procurement and services company, Xite.
The purchase will see ComputerCorp gain offices in Hobart, Launceston and Burnie. It will also give the company about 550 new government and corporate customers. Financial details of the deal have not been disclosed.
The majority of Xite's 25 staff will be kept on, according to its managing director, Colin Pedersen. He will take a new role as Tasmanian state manager for ComputerCorp.
"The consolidation of the channel and manufacturers in the industry is favouring bigger, national players," Pedersen said. "Smaller guys like Xite are not big enough to have clout with the major vendors and face being squeezed out - so I actively sought the sale of the business."
Selling up meant greater job security for employees and access to better career opportunities, he said.
The deal would also improve service levels in the Tasmanian market, Pedersen said.
"There are no national level VARs represented in this state," he said. "There is also a skills shortage here and integrating into ComputerCorp will allow us to bring high level engineering knowledge to Tasmania."
From ComputerCorp's point of view, the acquisition would allow it to further pursue its transition from VAR to a national business solutions provider, strategic marketing manager, Dee Broadmore, said.
"We have been moving into the solutions space for some time," she said. "Xite's IT procurement and services are very complementary to our own infrastructure services offering."
With integration already underway, the company would now look to get its message out to the market, Broadmore said.
"Comstra, a tier-one HP partner, is the local opposition down there," she said. "Xite was a tier two player and couldn't quite compete. But as part of ComputerCorp it will be able to offer some real competition."
ComputerCorp was now working on plans to establish a Northern Territory office by the end of the year to complete its national operations, Broadmore said.
It would then look to build a regional presence in Victoria, NSW and Queensland.