Commander buys into distribution with UniTel

Commander buys into distribution with UniTel

ASX-listed voice and data communications service provider Commander Communications has acquired audio/video equipment distributor UniTel for a sum of approximately $5 million.

Commander purchased UniTel, which specialises in the distribution of voice, video and data conferencing solutions, in order to add product distribution capability to its business.

Commander deputy managing director Dean Gingell said the exact price tag for UniTel will depend on the company's ability to meet performance requirements. He is hoping UniTel will contribute an additional $11 million of revenues per year to the Commander business. UniTel will continue to operate as a standalone business with all of its staff re-employed by Commander.

Gingell said a number of the products UniTel distributes are likely to be bundled with Commander's existing products and services. "It is relatively straightforward to sell audio conferencing products alongside telephony systems."

Commander recently purchased the small business customer database of application service provider Peakhour, and Gingell said the company remains focused on building the business through acquisition. "The way the sector looks at present, there are some good opportunities for buyers and sellers in the network integration space."

Gingell said Commander still has plenty of cash reserves despite the two recent acquisitions. "We had $33 million in cash flow last financial year," he said. "We were able to expense the Peakhour deal out of our marketing budget. We have a very sound balance sheet."

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