ComputerCorp CEO, Robin Rindel, will bow out tomorrow following the ASX-listed integrator’s (ASX:CZP) acquisitions of Synergy Plus and S Central. The combined company will also be rebranded Synergy Plus, subject to shareholder approval.
The deal, which is due to be completed by July 1, will see Melbourne-based S Central managing director, Peter Mavridis, takeover as the combined group’s CEO and join the board.
Rindel, along with ComputerCorp non-executive director, Bruce Harvey, will step down from the board and as CEO on June 30.
In a statement, the companies said switching management from WA to the east coast reflected the changing dynamic of its business operations. Once completed, more than 80 per cent of the combined group’s revenues will derive from outside of WA.
Mavridis said his appointment was part of a new high-growth strategy being taken by the combined group.
“Robin has done a great job in cost control. We’re now moving to a growth model, which has been my focus,” he said. The decision to rebrand as Synergy Plus was taken following market research and surveys of existing customers, Mavridis said.
“One it was a brand that was well recognised but, secondly, those who didn’t know it, took to Synergy Plus quickly,” he said. “It shows our focus on solutions going forward and is a statement on the new focus of the business.”
ComputerCorp, Synergy Plus and S Central announced their decision to combine forces in March. At the time, the company announced Rindel as its group CEO. Mavridis took a new role as executive director of strategy.
ComputerCorp will pay $9.3m for Synergy Plus over a three-year period, with a minimum purchase price of $6.5 million. It will also acquire all shares in S Central in exchange for a cash injection of $5 million from its key shareholders, Mavridis and Polly Mazaris. Once completed, the pair will own a 30 per cent stake, becoming the largest shareholders.
As a whole, the group has 300 full-time staff across 12 locations and joint annual revenue of $250 million.
Mavridis said redundancies had been made across ComputerCorp’s corporate and administration divisions, but flagged plans to bring on more technical and sales staff down the line.
Once the deal is completed, the group plans to undertake a capital raising of $10.5 million.
“ComputerCorp is now in a position to credibly stand in the market with a value proposition built on end-to-end, enterprise-grade, managed infrastructure solutions designed specifically to meet the business needs of mid- and enterprise-sized companies,” Mavridis said in a press statement.
“With our new economies of scale, we’re confident we can deliver more cost-effective solutions to the market… Our clear differentiator will be our more flexible, more responsive service and solution offerings that can be tailored to meet the specific needs of both ends of the market.”
According to documents posted to the ASX, ComputerCorp’s total current assets stand at $25.9 million, Synergy’s at $25.9 million and S Central’s at $9.1 million. The combined group will have total equity of $12.9 million.