Services outfit, Datacom, has acquired Sydney-based Web and application development company, Relate. The deal is valued at $5 million and consists of a mixture of cash and shares.
The two NSW development teams will merge under new entity, Datacom Relate.
Datacom CEO, Michael Browne, said it was looking for opportunities to grow its business.
"For us it's a strategic step that signals our serious intent to be a major player in the application development arena. I look at that market as one which will be quite palatable to our success as a business over time," he said. "It will allow us to differentiate ourselves in the market because a lot of IT is becoming increasingly commoditised."
Browne said Relate had strong skills in Microsoft .Net, SharePoint and BizTalk server technologies.
"Relate is very focused on design studio work and has very strong competencies in the electronic commerce arena," he said. "Our focus has been more on the enterprise production platform level. By putting the two companies together, we cover core areas from a development perspective. It gives us reach across different skill sets that we hadn't built up in our own business and same for Relate."
All of Relate's 35 solution architects will be kept on-board, with its founder, Vince Nicita, taking on the managing director's post for Datacom Relate. 20 enterprise application developers from Datacom's North Ryde office will be relocated to its CBD office.
Browne said he would like to grow the new entity's staff to 200 in the next three years. It is currently looking to fill six positions within software development, project management, business analysis and .Net.
"The demand is certainly there and I have seen it across the board within state governments, corporate, enterprise and SME-type businesses," he said. Relate has about 60 active clients. The combined entity has just signed on Scout Australia.