Small business IT provider, Calvert Technologies, has acquired the operations of fellow SA-based company, Multi Media Interlan, under a non-financial agreement.
The deal will provide Calvert Technologies with a foothold in the pharmacy sector. Multi Media Interlan provides computer supply and support services to a wide range of customers, including a large selection of clients operating in the pharmacy, nursing homes, medical practice and retail sectors.
“It gives us a larger client base and introduces a new level of client for us, but it’s not completely dissimilar to what we’re use to in small Microsoft networks,” Calvert Technologies founder, Dean Calvert, told ARN. “We can apply our experience and expertise at managing those networks more efficiently.”
Calvert said the two companies recognised the stronger prospects that could be achieved by combining operations rather than competing against each other.
“Multi Media has struggled to attract the additional technical skills it required to gain critical mass, a problem that was exacerbated by the business turbulence and spending downturn caused by the global financial crisis,” he said. “With the expanded customer base and additional skilled staff, Calvert Technologies has gained the breadth and depth of skills it needed to reach the next level of opportunity.”
It was a good growth opportunity for both companies, Calvert added.
The acquisition will see Calvert’s employee numbers rise to 13, including the arrival of Multi Media Interlan founder, Brian Bellchambers to the business. Bellchambers will assume responsibility for client service contracts that are held by the business and will still retain ownership of the company .
“One of the dangers of small business is that if you’ve got someone off sick or on holidays, then the smaller the business, then the larger percentage that it is out of action,” Calvert said .
Bellchambers said he was looking forward to continuing to support customers as part of the Calvert team.
“I’ve known Dean for a number of years and respect his skills and ethics,” he said.
Calvert Technologies is also moving its offices to bigger premises in June, which will be double the size of its current location. The new office measures 464sqm, and the upgrade is necessary to cater for the company’s current and future growth. This year, Calvert plans to hire at least two technical people and one sales staff member, to bring the company’s size up to about 16 people.
“We were going to be moving anyway, and by having this acquisition in place, it’s going to help us cover those fixed costs, because the revenue stream will be greater,” he said.
Calvert added he was also planning to get some more Microsoft competencies under his belt to be able to talk to his clients about virtualisation and cloud-based solutions.
“We’re going to need people with different skill sets to help look after that side of the business,” he said.
No other acquisitions are planned at this stage, but Calvert said that if an opportunity did arise, he’d see if it mades sense in relation to the company’s core strategic objective and fit within its skill set.