Recent Cirrus Networks (ASX:CNW) acquisition, Correct Communications, has generated $2 million of new orders to date for its new parent company, bolstered by significant Federal Government and public sector orders.
Cirrus Networks revealed in November last year it had struck a deal to acquire the Canberra-based systems integrator in a share purchase agreement set to be worth up to $5 million.
Correct Communications counted Microsoft, Cisco, Hewlett Packard Enterprise (HPE), VMware, Palo Alto Networks and NetApp among its vendor partners at the time of the acquisition announcement.
The acquisition of the IT services provider was expected to give Cirrus a full IT services and managed services offering in Canberra, and a new impetus to push into the lucrative public sector market.
Now, the publicly-listed IT services provider is talking up the value of the new acquisition to its top line financials for the three months ending March this year, reiterating the rationale behind the move to buy Correct Communications.
“The key strategic rationales for the acquisition were the combination of Correct Comms expertise, knowledge and leading presence in the Canberra market complementing Cirrus’ panel status and Cisco gold certification,” the company told shareholders.
“These synergies are already delivering incremental opportunities and increased value to clients,” it said.
In March, Cirrus Networks said it had won a $1.6 million networking maintenance and support contract with the Australian Trade and Investment Commission (Austrade) through Correct Communications.
The deal saw Cirrus, via its Correct Communications subsidiary, supply equipment relating to Austrade network requirements, including associated maintenance and support. The company said at the time it represented a key strategic win for Correct Communications.
The three months ending March saw Cirrus Networks pull in $28.8 million worth of receipts from customers while reporting cash outflows of $25.5 million.