Melbourne-based multimedia distributor New Magic will divide into two companies to focus on one of its strongest brands, Canopus.
New Magic has been supplying resellers with multimedia products for more than 13 years. The company specialises in digital multimedia, DVD authoring and 3D graphics tools from vendors in the US, Europe and Japan.
New Magic has been distributing Canopus video editing products in Australia for the past three years. The success of the Canopus range has grown to represent around 70 per cent of the business, prompting managing director Niv Novak to contemplate a more exclusive arrangement.
"Growth has been unprecedented -- we are doubling our sales each year -- so we made the decision to commit to Canopus and dedicate the company and team to them," he told ARN.
The New Magic business has been sold for an undisclosed amount and will move from its Melbourne office to Sydney. Mark Howard will head up the new operations under the banner New Magic Australia. However, the new business will continue to distribute brands such as NewTek, Hauppauge, Sonic Foundry, Sonic Solutions and Scala.
All warranties, accounts and tech support will continue uninterrupted, Novak said. "It is effectively just an office move."
From this week, the previous New Magic team and office will become Canopus Australia.
Canopus is an investor in the new Australian company. The split is a big move for Novak and his team, but he is confident the vendor will continue to support the new company.
Novak will also head up worldwide marketing for Canopus, and will set up a dedicated national design group, which will run jointly out of Australia and Japan under the banner Canopus International Marketing.