Listed IT services company eGlobal has acquired fellow Queensland-based integrator OZeCorp in a stock deal worth $1.25 million.eGlobal, a specialist in data hosting and SAP systems, purchased OZeCorp to expand its e-commerce integration capabilities, particularly in the area of electronic marketplaces.
The acquisition also gives eGlobal access to new customers in the United States forged by OZeCorp's San Francisco operations. But while expansion into the US might normally be a risky move for an Australian integrator, eGlobal CEO Gordon Chalmers said eGlobal will be taking the expansion one step at a time on a project-by-project basis.
"Our expansion is on the back of a fairly major project, so it's not risky at all," he said. "We are e-enabling Metromedia technologies, the largest outdoor media company in the world, and we expect to get at least a years worth of work out of that for a start."
In a message to shareholders on the Australian Stock Exchange, Chalmers pointed out that the weak Australian dollar made a foothold in the USA a rewarding move.
"With the Australian dollar trading at an all-time low, we look forward to aggressively increasing our market presence overseas - particularly in the United States, where high costs and a continuing talent squeeze are placing innovative IT solutions outside the reach of many companies," he said.
Chalmers is also hoping to leverage OZeCorp's existing relationship with Computer Sciences Corporation (CSC), who has housed the consultants for the past year under a strategic alliance agreement. He said he would meet with CSC representatives next week to explore the possibility of furthering the relationship. "It will be good if that relationship can continue, as I believe it could be mutually beneficial," he said.
According to Chalmers, the acquisition was also based on a strategic to build up the company's marketing skills. As well as its integration work, OZeCorp runs conferences (such as the 'First Tuesday' series of events), and conducts a wide range of other marketing and public relations activities. Chalmers believes eGlobal's low profile in the market is not representative of its incredible growth in the last twelve months, which has included a national expansion to five offices and 110 staff, and a similar number of consultants tackling the Chinese market.
"Our weakness is marketing - its no justice to us that we're one of the fastest growing Internet integrators but no-one knows us," he said.Photograph: Gordon Chalmers, eGlobal CEO