Locally owned IT services company KAZ Computer Services (KAZ) has increased the 2001 revenue forecasts laid out in its prospectus earlier this year by 30 per cent, following the acquisition of outsourcing company the Ausdata Group.
Kaz managing director Peter Kazacos explained that the companies would continue to run as separate entities, taking advantage of cross-selling opportunities.
"Ausdata and KAZ form a complementary partnership. Ausdata has a series of blue-chip clients like Qantas, Coles Myer and American Express, as well as a focus on long-term hardware and service contracts.
"We were looking for the opportunity to extend our IT outsourcing services into back-office applications outsourcing following trends I have observed overseas," Kazacos said.
Ausdata's specialisation in the provision of large document processing machines also complements KAZ's focus on high-end servers and other hardware, Kazacos added. "Both companies work at different tasks within a similar client group."KAZ announced the Ausdata acquisition deal in a statement to the ASX last week, at the time advising that the 28 million shares it issued at $0.50 had all been placed allowing the company to raise the $14 million sought through the float.
A spokesperson for KAZ Computers told ARN that the financial forecasts following the acquisition are looking much better than what were already healthy figures in the prospectus. Revenue forecasts for 2001 have now been adjusted up to $96 million with profits for the year expected to come in at around $18 million on that turnover - a rise of 64 per cent on the prospectus quote.
Those profits will dilute down after tax and other costs to represent a dividend of 1.37 cents per share which also well ahead (51 per cent) of initial forecasts.
The move continues the rapid growth of KAZ, which after a successful float earlier this year has propelled managing director Peter Kazacos onto the BRW Rich 200 list (see page 22).