One of the channel's quiet achievers made a bold bid to boost its operations last week which will see it acquire a network management centre and extend its Victorian business.
The Memorandum of Understanding (MOU) signed between IT outsourcing company Iocom and Beethoven Computer Services sees Iocom acquire 100 per cent of the services and systems integration business currently owned by Beethoven.
Iocom listed on the ASX last year, and managing director Peter Singer said as a publicly listed company one of the ways to grow was to make acquisitions. `We are going to acquire to grow and this is the first in a line of acquisitions.'
Singer said it would be `win-win' for both Iocom and Beethoven's customers. `There are synergies between the two companies which work,' he said.
The acquisition will expand Iocom's existing skillset - such as the acquisition of Beethoven's network monitoring centre, which will allow Iocom to add these services to what it can offer customers. Singer said it would also allow Iocom to expand its Victorian operations.
Beethoven's services division has an annual turnover of about $7 million. It specialises in IT services, strategic IT planning, network design, systems integration and software development. There are about 40 staff in its systems integration and services business, headquartered in Melbourne, with offices in Sydney and Brisbane.
Iocom will not acquire the software development business of Beethoven, because of its wish to remain focused on its core business of services.
Financial arrangements of the deal have not been disclosed, although Iocom expects to release full details this month.