Frontline Systems has picked up Melbourne-based managed services provider, Hyperlink, as part of plans to expand its footprint.
Managing director, Steve Murphy, said Hyperlink came up as a viable purchase through Frontline's business brokers about a year ago. Its Melbourne CBD datacentre was the catalyst for the deal. Financial details have not been disclosed.
Hyperlink's owner, Avdi Hamit, had put the eight-year-old business up for sale after relocating to the US, Murphy said.
"It was a perfect opportunity to acquire the business because it's hand in glove with what we do," he said. "The Melbourne managed services business fits with our Sydney datacentre business. We had been pining for the ability to offer hosted managed services in that state."
Hyperlink's team also brings Citrix, VMware and Unix technical skills, Murphy said.
The deal will add at least $3 million to Frontline's annual revenues of $150 million, Murphy said, as well as providing a fresh customer base to sell into. Frontline's managed services business currently brings in revenues of about $20 million.
"Hyperlink has a fair spread of customers that vary in size size. It's a similar mix to Frontline as we aren't pigeon-holed into any verticals," he said.
Hyperlink's 10 full-time staff are being kept on. Frontline also has 20 Melbourne staff focused on its system integration business.
The Hyperlink acquisition follows Frontline's purchase of IBM systems integration subsidiary, Classic Blue, in December. Murphy said he would now look at securing datacentre facilities in Canberra and Queensland.
"We are looking at acquisitions because there are holes in what we do," he said. "As more datacentres are mooted for building, we need to be in those [geographic] areas. There's a datacentre being built in Queensland, and Melbourne is a hot bed of prying eyes looking for datacentre space."