ComputerCorp has snapped up Melbourne reseller, Fed IT, in a $1.4 million deal.
The WA-based integrator's CEO, Murray Mansell, said it had been looking for a suitable Victorian state manager as part of its national expansion plan.
"Fed IT has a lot of synergies with us and brings resources we couldn't get from the marketplace," Mansell said. "Its calibre of management was something we were mindful of. The Bowtell brothers [Jeff and Stephen] are well known in Victoria and have a lot of experience."
The acquisition price is a combination of just under 3 million ComputerCorp shares, valued at $0.25 each, and $741,562 in cash. The payments are scheduled to be completed by November 30.
Mansell said Fed IT's procurement and services capabilities would also help drive its push into the services arena. The two companies share some vendor partners, including HP and Toshiba. They also have similar customer bases including public sector and education clients.
"We have experience in the WA education market so this fits well," Mansell said. "We will be also looking at private schools nationally, which is another of Fed IT's fortes. It is also in defence, which complements our Canberra office."
Alongside the reseller business, the deal also sees ComputerCorp pick up Fed IT's Notebook Depot arms in Victoria and Queensland. Mansell said the repair division would complement its own offering.
Mansell said all 20 staff would be retained, increasing total employee numbers to 300.
For more on this story, check out next week's edition of ARN.