Avnet and itX transition through next integration phase

Avnet and itX transition through next integration phase

The two companies are in the process of integrating interstate offices and backend systems

The integration between distribution houses Avnet Technology Solutions and itX is progressing through the next stage, bringing some of its offices together across the country and linking backend systems.

“The first thing we had to do was decide how we were going to structure ourselves as an organisation – one team – one Avnet,” Avnet A/NZ vice-president and general manager, Laurie Sellers, said.

So far, the combined entity is in the process of merging staff into single offices in Melbourne, as well as Perth and Brisbane.

It has signed a new lease for an office in Melbourne, bringing the two teams together and is on verge of signing new real estate in Perth.

In Brisbane, Avnet previously occupied enough office space to accommodate both companies.

However, it won’t be taking a similar route in Sydney for the time being due to the sheer size of both offices. It will continue to run from two premises: itX’s office in North Ryde and Avnet’s Gladesville space.

“We still have some challenges in terms of location because we have a big office in Gladesville, and big office in North Ryde; neither office in Sydney is big enough to accommodate the whole team, so for the foreseeable future, we’ll be operating out of two offices,” he said. “We have smaller teams interstate and it’s not that difficult to get them under one roof.”

The next step in the integration process is bringing the IT systems and backend ERP processes together. It has assembled an IT team to tackle the challenging task under the direction of Ken Harper.

So far, it has integrated its email and communication systems. It has also taken the first steps in bringing together its backend ERP system that will be running on Pronto, which was previously itX’s legacy system.

“We’ve had a team working on that to enable the migration of Avnet products on to it,” he said. “We’ve had the first products up and running live for about a week. We trialled the system very carefully and the results so far have given us the confidence to say that it's all working and the migration of the others to follow will be fairly quick.”

Once this is completed, Sellers said it would be in a better position to consolidate the rest of system in terms of reports and invoicing. He expects the full transition will be completed by the end of the calendar year.

In January Avnet revealed its new management line up.

The distribution business from both businesses went under one umbrella now run by Greg Newham.

Gavin Lawless is helping to build and grow Avnet’s adjacent businesses such as Briell Marketing and Sydmed.

It has brought the marketing team together under the direction of Michael Costigan.

“We have all of the teams working together, cross selling into our accounts and bringing together to the hardware and software components from our vendors, which gives us a true ability to distribute enterprise solutions,” Sellers said.

Avnet announced its intentions to acquire itX in August last year for $77.5 million.

The latest news on the integration process coincides with the visit of President and COO, Rick Hamada, to Australian shores. In July, Hamada will be taking over the CEO reins.

Check out the Q&A with Hamada and Sellers.

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Tags Mergers and acquisitionsitXmichael costiganavnet technology solutionsGreg NewhamPronto SoftwareGavin LawlessLaurie Sellers


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