IT services firm, UXC, has earmarked $20 million for acquisitions to fuel its push into the disaster recovery, business continuity and security markets.
The expansion plans coincide with the release of the company's 2005 financial year financial results. At its recent annual general meeting, the company reported $242 million in revenue, up 28 per cent over the previous year.
"The company is going on another acquisition shopping spree, which we have been doing for the past three years," UXC company secretary, Mark Hubbard, said.
"We need to look at where we are not, and that's in disaster recovery, business continuity and security. We don't have strong offerings there."
Hubbard said the company had nearly completed three local company acquisitions, which were slated for completion by the end of the year. While not publicly reported, UXC has also completed a fourth acquisition of a company called eFab, a business intelligence and corporate performance management provider.
"We target acquisitions in two areas: bolt-ons, whereby we invest in spaces where we already operate so as to escalate existing strengths into dominant positions, and in new spaces that are complementary to our existing offerings," Hubbard said.
UXC has completed eight acquisitions in the past 12 months, including the purchase of Microsoft and Oracle house, Dytech, and Oracle reseller, Red Rock Consulting. These had allowed UXC to pursue larger customer contracts by improving its cross-selling abilities, he said.