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Updated: NetStar sold to Logicalis for $US19.8m

Updated: NetStar sold to Logicalis for $US19.8m

Networking integrator in Australia and Asia-Pacific acquired by UK-based service provider.

UK-based IT service provider, Logicalis, has acquired networking integrator, NetStar for $US19.8 million.

A long-time Cisco partner, NetStar was a spin-off company from communications distributor,Anixter’s networking division and established a presence in Australia, Hong Kong and Taiwan simultaneously. It now has businesses across Asia-Pacific and employs more than 300 staff, all of which will be retained.

NetStar Australia recently broke into the local datacentre market by gaining Cisco’s Unified Computing Systems accreditation.

While both parties had previously engaged in acquisition talks, the serious discussions started just three months ago.

With operations in key commercial centres such as Sydney, Taiwan and Singapore, the company provides Logicalis an immediate foot-in-the-door to the Asia-Pacific region as well access to a swathe of multi-national clients.

NetStar CEO, Chris Meager, will keep his position and flagged minimal changes to the integrators operations. He said management and staff view this acquisition as a positive step for the company to broaden its reach.

“This is just a change of ownership so the business will continue as is,” Meager said. “We will sit down in our normal annual budget cycle and will do planning together with Logicalis. This may result in us deciding to take on some additional capabilities to utilise what Logicalis already has to grow NetStar faster.”

Logicalis chief executive, Ian Cook, described the deal as a strategic business development.

“NetStar, with its tremendous customer base, has great capabilities and experience in the areas of network integration, datacentre and managed services, with strong annuity revenues,” he said in a statement. “We expect to further build upon the Cisco focused businesses and extend our offering to include datacentre solutions to mirror the other existing Logicalis markets.”

Logicalis has businesses in the UK, US, Germany and South America. It is a division of Datatec Limited.


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