KAZ Computer Services has finalised a $6 million acquisition of high-end mainframe software developer Fundi in an effort to position itself as the "main IT outsourcer for the Asia-Pacific time zone."
The deal, which includes the transferral of shares and 75-strong staff, will give KAZ a ready-made presence in the Western Australian market, as well as added manpower and resources to leverage into Asia.
"Fundi brings to KAZ the specialist skills in IT mainframe outsourcing necessary to increase its market share throughout the Asia-Pacific region in the mainframe segment," according to Peter Kazacos, managing director of KAZ.
KAZ will also gain access to Fundi's existing client base which includes a large number of Fortune 500 companies globally as well as Alcoa Australia, Western Power, the Western Australian Hospital Benefit Fund and the Insurance Commission of WA.
Already holding a strong position in the midrange IT and business process outsourcing sector, the acquisition will allow KAZ to expand into the high-end markets.
Equipped with its new arsenal of skilled staff KAZ is already pursuing a number of potentially lucrative accounts within WA. "Mainframe outsourcing contracts are typically long-term, five years plus, and relatively large in terms of dollar size -- $25 million plus," said Kazacos. "With our established network of nine data centres and our depth of technical expertise, we now have the requisites to aggressively pursue mainframe opportunities throughout the region."