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Xpedior boosted by $83 million from Internet super carrier

Xpedior boosted by $83 million from Internet super carrier

Systems integrator Xpedior has announced a global investment agreement with Internet super carrier PSINet, which will see an $83 million investment by the latter in Xpedior worldwide.

Kevin Morgan, Xpedior's Australian managing director, said the partnership should "prove to be a powerful combination".

"Xpedior's expertise in developing and deploying integrated e-business solutions, coupled with PSINet's planned global network of hosting centres, should prove to be a powerful combination," Morgan said.

The agreement will see PSINet gain an 80 per cent ownership of Xpedior, with Xpedior continuing to operate as an independent company.

Hamish Jolly, Xpedior's regional manager for Western Australia, describes Xpedior as an e-business solution provider. "We do end-to-end e-business, from the strategy end . . . right through to creative development, branding, user experience design, through to development of solutions in the very high end technologies at enterprise level," Jolly said.

Jolly said Xpedior had spent "the lion's share" of last year educating the Australian marketplace because maturity was not as advanced as in the US. "We have been explaining the level of commitment companies need to make in terms of e-business."Jolly added that, particularly since January, its large-scale clients were now coming back to Xpedior, asking it to integrate the technologies, so the US models could be applied.

About 70 per cent of Xpedior's customers both locally and internationally are at the enterprise level, with the other 30 per cent consisting of dot-com startups.

Morgan said it was able to satisfy the "key needs" of its customers in this space. "Time is the one resource they don't have a lot of, so time to market is a critical driver of being able to envisage, articulate, architect and build quality systems in more aggressive timeframes than other players [which] is a consistent differentiator and the reason why we win work."As for the future, Morgan said expanding into Southeast Asia was a fundamental part of its strategy. It is also planning to open a Melbourne office by the end of Q3. "Our model is to grow aggressively both organically and by acquisition in this region," Morgan said.

"We are in the process of finalising negotiations on the acquisition of an organisation in Hong Kong which will form the basis of our entering an on-the-ground presence in Southeast Asia," he said. Although Morgan could not release further details of the proposed acquisition, he did say it was a development firm/systems integrator.


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