Dimension Data spends $US138 million on US integrator

Dimension Data spends $US138 million on US integrator

Dimension Data (DiData), parent company of Australia's Com Tech, has announced the acquisition of Premier Systems Integrators, a US-based systems integration firm, for $US138 million in cash.

The agreement, subject to due diligence and board approval, is effective as of April 1 and will be settled with an initial cash payment of $US114.5 million. The remainder will be deferred over 18 months. Premier boasts annual revenues of $152 million and a net asset value of $21 million.

The company designs, builds, supplies and manages Internet and intranet infrastructures that support core business applications. Premier reported profits (before tax) for the period ended December 2000 of $9.1 million, which excludes the losses of its wholly owned subsidiary, i-bridge, totalling $5.4 million. The subsidiary is expected to become profitable in Q1 of this year. Premier's immediate adoption of the DiData brand will give DiData an immediate presence in the southeastern US and Texas.

Adrian Liddiard, DiData Network Services vice president for US business development, said no lay-offs will take place at Premier once the acquisition is complete, although he admits that DiData may make a few changes to the management structure. He says that DiData is effectively buying the intellectual capital of Premier.

In light of i-bridge's loss-making situation, Liddiard is adamant that the division will become profitable by the end of the first quarter. "It must be understood that the loss made by i-bridge is a 12-month reported number. In terms of managed services, a company will invest heavily in this before any sales are made," he said. "As the company starts selling it will slowly but surely start to cover its fixed overheads, a situation on which it is already showing progress."

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