Major shareholder ManTech International has taken its holding in Melbourne-based reseller and IT services firm, Praxa up to 100 per cent in an all-cash transaction.
Financial details of the deal were not publicised but ManTech, which already owned 53 per cent of Praxa, is known to have beaten off several competitive bids. The US-based ManTech has taken a particular interest in the Australian company's expertise in providing Microsoft solutions.
Praxa has shown its pedigree in Microsoft platfoms in the past and was named worldwide Microsoft Solutions Provider Partner of the Year in 1996. ManTech has already clearly identified Australia as a great opportunity to expand its Vobix arm, a Kentucky-based hosting software company focused exclusively on Microsoft technologies.
ManTech's large technical personnel base and worldwide presence offers Praxa expanded access into new markets and business partnerships. The parent company's 30-year track record as a US government contractor is of particular interest to Praxa as a potential growth engine.
Praxa has made dramatic changes to its infrastructure over the last four years as it struggled to refocus its operations on core competencies in IT infrastructure, systems integration and multimedia streaming. It reached a low-point late last year, which saw the company lay off 63 staff.
Colin Holgate, Praxa's CEO said the combined company will continue to target growth both in Australia and internationally. However, it is expected that both units will operate independently, at least in the short term.
"Client value-add activities are the core of our business philosophy," said Holgate. "Our aim is definitely to develop long term strategic relationships, rather than be viewed as the provider of solutions on a transactional basis."