ASX-listed company Montech Holdings is set to acquire systems Integrators and Cloud specialists Breeze and Technology Effect in a bid to merge the two companies.
Upon completion of the transaction, the owners of Technology Effect and Breeze will become significant shareholders in the combined entity, according to a company statement.
Initially Technology Effect and Breeze will continue to operate under their own brands.
However it is envisaged that in time Technology Effect and Breeze will merge, with rebranding to occur in 2015.
At completion of the merger, Breeze chief executive, Nicki Page, will be appointed as a Director and chief executive of Montech.
Technology Effect co-founder, Joe D’Addio, will be appointed as a Director and chief operations officer of Montech.
Both will maintain responsibility for their respective businesses.
Breeze chief executive, Nicki Page, said she was delighted about the merger.
"We are looking forward to converting this into real value for our customers, staff and business partners,” she said.
Montech non-executive chairman, David Shein, will work closely with the leadership teams at both Technology Effect and Breeze, supporting their business requirements and efforts, as well as investigating additional opportunities (including via acquisition).
Montech non-executive chairman David Shein said Technology Effect and Breeze were both independently successful businesses.
“I am very excited at the prospect of both Technology Effect and Breeze joining Montech," he said.
"In both businesses I see outstanding entrepreneurs who understand technology and results, and have similar culture with respect to customers, partners and employees.”
Page said the acquisition and forthcoming merger was brought about as a consequence of both Breeze and Technology Effect exploring how to evolve and expand their businesses in terms of offerings, services and geographies in which they operate.
“The emergence of the cloud has brought with it great opportunity, but it is changing the IT landscape significantly and rapidly,” she said.
“We firmly believe that there is a market opportunity in this new world for a niche organisation with a ‘customer first, Cloud First’ culture, focused on deep integration capability across platforms, applications and data and which will differentiate itself through exceptional people, market leading commercialised IP and strong partnerships with leading technology providers.”
Microsoft director of partner business and development, Phil Goldie, said there were a lot of changes happening in the Partner Channel.
"Today’s announcement is a great example of how some of our most innovative Microsoft Azure partners are bringing new thinking to our joint customers in a ‘Cloud First, Mobile First’ world."
Technology Effect co-founder Joe D’Addio said to business models were very complementary, but most importantly there was a strong cultural alignment, a focus on high quality outcomes for customers and a common belief in the potential of Cloud Services and Solutions.
Technology Effect has been operational for almost 10 years and employs over 60 staff.
The customer base is largely Queensland-based with a strong focus on mid-tier enterprises and public sector.
Breeze is a Sydney-based application integration company with over 20 employees.
Its portfolio of offerings covers application development and cloud integration products and solutions.
Since its inception Breeze has worked closely with Microsoft.
The transactions are subject to various conditions precedent including satisfactory due diligence, regulatory and Montech shareholder approvals, with completion expected in early 2015.