Brisbane-based integrator Data#3 has made good on its promise to break into the Sydney integration market by acquiring Sydney integrator CICtechnology for just over $6 million last week.
CICtechnology, which employs 130 staff and has an annual turnover of $55 million, is expected to fill some technology gaps in the integrator's weaponry such as remote network management, outsourcing and e-commerce offerings.
The buyout, or merger, could also secure a much needed profile boost for Data#3. The integrator has flourished in Queensland, with customers including Suncorp-Metway and Brisbane City Council, but is yet to make its mark in the New South Wales market. The addition of CICtechnology's PC integration expertise gives Data#3 the opportunity to bid for considerably larger contracts than it previously could.
According to Data#3's managing director John Grant, such technology diversification, coupled with a more prominent profile, should confirm its status as a "Tier One" integrator. The two companies hold reseller agreements with a host of top vendors including Cisco, Compaq, IBM, Microsoft, Network Associates and SAP.
"Once integrators reach a certain size, it is usually difficult to take the next step and expand. This partnership now means we can bid for a higher level of business - one which demands national presence, a foothold in government and a high level of competency across a variety of technologies," Grant said.
Data#3's outsourcing capabilities will also be boosted sig-nificantly by CIC's remote network management facility that can serve a customer's wide and local area needs, Grant added.
For Charles Tym, CICtechnology's managing director, many positives will emerge from this arrangement.
"This deal is like a growth hormone to us. Customers are now asking for fewer partners in their tender requests and with our combined strengths in SAP environments, outsourcing, help desks and call centres we can offer potential customers a competitive solution."
Such a prospect has Grant predicting that Data#3 will be well ahead of its target to increase combined sales to $170 million within three years of listing in mid-1997.