Datacom has acquired the IP and selected assets from Western Australia-based education provider, XciteLogic.
Datacom will absorb all of Xcite’s existing business and services, and provide a seamless transition for clients, suppliers and partners. It will also offer 25 key Xcite employees positions within the company and will support them to bring their specialist domain knowledge to the business.
“This investment is part of Datacom’s strategy to continue developing intellectual property assets and capability to provide differentiation for our clients in their activities and to further grow and position the company as a leader in the A/NZ region,” Datacom CEO, Peter Wilson, said.
Datacom has offices in every state and the acquisition strengthens its strategic position in the Western Australian market with the addition of Xcite’s integrated ICT solutions for government, corporate and education sectors.
Datacom Western Australia director, Basil Lenzo, said it would complement its existing business in the state, as well as taking on the education sector, value-added services and infrastructure solutions. It recently opened offices in the Pilbara to service the resources sector.
Beyond Western Australia, Datacom also intends to expand on Xcite’s existing presence in Victoria and NSW.
Wilson pointed out that it was important to preserve what the business had built. He hinted more acquisitions were on the cards.
"There's opportunities that we're looking at in the market at the moment," he said. "There's a lot of disruption happening and Datacom is in a very fortunate position to be extremely financially secure to look at all the opportunities that are put in front of us."
He said it would be looking at adding to the offerings it currently takes to the market with further IP.
"One of the things that was important to us about Xcite, was the intellectual property assets they provide," Wilson said. "We saw that added value to our existing customers and allowed us to develop a more comprehensive value proposition for a set of customers that we're not doing business with today.
"Anything that we consider in the future, will be designed to do exactly that."
Last month, XciteLogic called in the administrators, appointing Dino Travaglini and Matthew Donnelly from Grant Thornton on May 9.
According to a report the company owed $3.8 million to unsecured creditors.
Travaglini said Xcite had under-capitalised and invested too much in software development and R&D.
In March last year, XciteLogic merged with its former rival, Key Options Technology, which itself faced cash flow issues.