Local systems integrator, Ensyst, has acquired IT outsourcer, SynergyIT, which was a privately held subsidiary of ASX-listed Affiance Group. The terms of the acquisition have not been disclosed.
The deal will see Ensyst take on the majority of SynergyIT's 10 staff and its Brisbane office. A Sydney premises will be consolidated into existing Ensyst operations.
While the move would effectively remove a competitor from the market, the deal was more an attempt to avoid the pitfalls associated with rapid growth, director, Tim Sone, said.
"Once you get to a certain size as an integrator you start to get into no-man's land," he said.
"You're too big to do some work, but not big enough for other work. This is a way to get over that hurdle as soon as possible."
The acquisition would see the company begin to compete more effectively in the government sector, Sone said.
"We are now getting short-listed for tenders, so growing in size has helped," he said.
"In terms of verticals, we can now get more of the top-mid professional services firms in areas like accountancy and legal too."
The move was also an effort to get ahead of the inevitable consolidation in the SME outsourcing space, Sone said.
"There are a lot of small players out there and I can't see some of them being viable over the medium term," he said. "The market is maturing and it's now more about customer churn, so acquisition has become a growth option.
"We have very high growth expectations and plan to sustain them. We have effectively doubled our revenues with the [SynergyIT] acquisition and expect to double again in a year's time."