Rindel: Quick integration key to merger success

Rindel: Quick integration key to merger success

CEO of the combined ComputerCorp, S Central and Synergy Plus businesses claims group can succeed despite market downturn

A quick and streamlined integration plan will be key for the newly merged ComputerCorp, S Central and Synergy Plus organisation, its CEO claims.

This week, the trio announced they will unite to deliver end-to-end solutions to mid-market customers. Under the arrangement, S Central has purchased a 30 per cent stake in ASX-listed ComputerCorp, making it the largest single shareholder in the business.

ComputerCorp has also acquired Synergy Plus from ASX-listed player, Hyro, for $9.3 million.

ComputerCorp CEO, Robin Rindel, who will become CEO of the combined entity, said his short-term focus would be to successfully integrate the businesses. S Central has also made seven acquisitions in the last 12 months, which presented additional challenges.

“The immediate step is to get the deal concluded, as there are a number of conditions to be met. Then we will go through the transition and integration plan, implement common systems, and so on,” Rindel said. “We want to be in position by the end of June and go forward into the new financial year with a complete suite of offerings.”

He said market conditions were tough, but claimed a quick integration plan could create opportunities.

“Systems can be a big issue, but it’s also where the efficiencies are,” he said. “It is tough out there, but we have a strong sales team at ComputerCorp.

“If we can integrate and execute on this quickly, there are opportunities to get leaner and consolidate our offerings – when things turn around, we can capitalise on that. This deal transforms our business.”

The merger with S Central and Synergy Plus tied into ComputerCorp’s long-term efforts to develop a comprehensive mid-market presence and might across the eastern states of Australia, Rindel said. It also complemented ComputerCorp’s recent acquisition of Victoria-based education and SME player, Paragon Systems, for $2.1 million.

“This doesn’t change our strategy – if you look at where we’ve come from and where we want to go, it’s about moving into more mid-market offerings, which is what S Central provides,” he said. “The deal allows us to offer more end-to-end solutions. We also need to be in the datacentre, and Synergy gives us that.”

Rindel highlighted S Central’s skills across virtualisation, unified communications and storage as critical in building a mid-market business. Synergy’s IBM infrastructure expertise was another piece in the puzzle.

“S Central gives us extra capability around VMware, Microsoft and Citrix. This dovetails nicely with that part of the business we had already but wanted to expand,” he said.

The combined group, which will be rebranded, will have 330 staff across Australia and about $250 million in annual revenue.

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Tags s centralcomputercorpsynergy plus

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