IT services firm, UXC, is putting aside $20 million for acquisitions with the intention of breaking into the disaster recovery, business continuity and security markets.
The expansion plans coincide with the release of the company's annual financial results. At its recent annual general meeting, it reported revenues of $242 million, up 28 per cent from the previous year.
"The company is going on another acquisition shopping spree, which we've been doing for the past three years," UXC company secretary, Mark Hubbard, said.
"We need to look at where we're not, and that's in disaster recovery, business continuity and security. We don't have strong offerings there."
Hubbard said the company was working on three local company acquisitions, which were slated for completion by the end of the year. While not publicly reported, UXC had also completed the acquisition of a company called eFab, a business intelligence and corporate performance management provider.
"We target acquisitions in two areas: bolt-on, where we invest in spaces we already operate in 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.
The company had also recently appointed its first national business development manager, Anne-Maree Lowe, in a bid to further grow cross-selling across its business units.
Alongside its acquisition strategy, Hubbard said the company had also recorded strong organic growth over the past year, driven by increased margins and contributions from its three core divisions: Business Solutions Group (BSG); Utility Services Group; and IP Ventures Group. About two-thirds of business came from BSG, which specialised in consulting, applications and infrastructure services, he said.
The VoIP market would be a top focus for BSG, as well as applications growth and database management.
"VoIP is big for us right now, particularly in the professional services and hospitality space," Hubbard said.