Sydney-headquartered IT services player, FTS Group, has acquired Canberra-based IT services and software development firm, Connexxion, boosting its presence in the nation’s capital.
Connexxion has made a name for itself delivering specialist IT business solutions for clients through its consultancy and recruitment services, business process outsourcing, bespoke software development, commercial-off-the-shelf solutions and IT support services.
It counts Microsoft, Sliced Tech, Macquarie Telecom and Symantec among its partners.
Being based in Canberra, it maintains a roster of dozens of public sector clients, including the Australian Taxation Office (ATO), the Department of Defence’s Chief Information Officer Group (CIOG) and the Department of Foreign Affairs and Trade (DFAT).
According to FTS Group, Connexxion employs 42 staff and is expected to turn over $8 million in financial year 2017/18.
FTS Group CEO, Stephen Keys, said the acquisition will significantly bolster Connexxion’s IT capabilities and position the business for new growth opportunities.
It will also ensure FTS Group gains larger footprint in the lucrative Canberra public sector market, with at least two of its business, Veritec – which it acquired in 2014 – and Kobold, already maintaining a presence in the capital.
FTS Group describes itself as a federated group of services businesses, with each business within the group pursuing its own area of expertise. It claims to be the third largest privately owned IT services company in Australia.
The businesses under the group include Anatas, Cubic Consulting, Protegic, FTS Resourcing and SME Gateway, in addition to Veritec and Kobold.
Together, the group’s businesses can tackle anything from change management, training and integration, through to bespoke software development and project management service.
Now, the new acquisition is set to see the group’s reach extend even further, with Keys suggesting that the move capitalises on the group’s existing contracts with the Federal Government and further supports its ability to service a greater number of companies.
“This latest acquisition further validates our dedication to the Canberra IT ecosystem, including both Defence and the public sector,” Keys said. “We have been strategically bolstering our capabilities in recent years as we put steps in place to grow beyond our current footprint to service a national market.”
For Connexxion’s chairman of the board of directors, Hamish McRae, meanwhile, the deal represents new opportunities for the company’s staff and customers which, in turn, are expected to help accelerate Connexxion’s strategic growth plan.
“Connexxion is already a key long-term player in the Canberra market, but joining FTS Group will give our company access to new skill sets within the group, which will bring many benefits to our clients,” McRae said.
“We now have access to a range of new capabilities to offer our clients, including Customer Relationship Management (CRM), Microsoft Azure-led technology and a range of built applications. We are excited about what the future holds for both our staff and our clients,” he said.
According to McRae, the company also plans to hire new specialist staff in the coming months.