CDC Software's local consulting subsidiary, Praxa, has acquired Queensland-based integrator, PlanTec, for an undisclosed sum.
Praxa chairman, John Clough, said the company gave it a good base of business intelligence and enterprise content management skills in the Queensland market. Praxa plans to retain all of PlanTec's 30 staff and merge them with its existing 3-man operation in that state.
As part of the deal, PlanTec CEO, Peter Johnson, has been appointed general manger of Praxa Queensland.
"Our strategic direction is to expand in all spaces and set-up manageable operations in all states," Clough said. "We have strong teams in NSW and Victoria and are building up good management in both states, but we have always been a small player in Queensland. We've been looking for some time for an organisation with BI skills in Queensland that offered longevity, good local management and contracts in that marketplace.
"There seemed to be a lot of synergies with PlanTec."
Clough singled out PlanTec's expertise in Business Objects, Hyperion, Cognos and Microsoft business solutions as key attributes. There was also no customer overlap, he said.
PlanTec's customer base includes Ergon/Energex, Transpacific Industries, UniTab and Sydney Water well as state and Federal Government agencies. "PlanTec has very stable customers and a good image in the marketplace from a services point of view," Clough said. "This will give us a kick-start in Brisbane."
The PlanTec purchase comes a few months after Praxa, through its Nasdaq-listed parent CDC Software, acquired South Australian services integrator, Vectra Corporation.
Clough said it was looking to push up overall local revenue to $200 million. The figure currently sat at $60 million.
The focus would continue to be on business intelligence, he said.
"There are a lot of smaller organisations of 20-50 people which are great little businesses. Usually the management is very entrepreneurial and has grown the organisation to a reasonable level in that state. Those are the skills we want," Clough said.
"There has to be consolidation in the future. Our plan is to consolidate a lot of smaller organisations because we can't get in excess of $200 million organically."