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Datacom Systems boosts services with GlobalCenter

Looking to expand its Australian operations and boost its managed services offerings, Datacom Systems has acquired Melbourne-based data centre, GlobalCenter.

Datacom Systems CEO, Michael Browne, said the merger would help raise its annual Australian revenue to more than $80 million.

The IT services company currently maintains six data centres in New Zealand, as well as one in Sydney. Under the new deal, Datacom will retain all 10 GlobalCenter staff and its facilities in South Melbourne, bringing its Australian headcount to 650. It will also take over relationships with GlobalCenter's 140 customers.

Browne said the decision to acquire GlobalCenter was driven by a need to provide local hosting services in that state.

"A large part of our support services stem from hosting and managing a client's server environment," he said. "Our current customer base expected us to provide disaster recovery capabilities for example. We needed a local hosting presence to achieve that.

"We also have several current proposals in the pipeline where clients have said we wouldn't be in contention for their deals without the new Melbourne facility."

Browne declined to disclose the financial terms of the acquisition.

The latest acquisition announcement follows several moves by Datacom to develop its business in Australia in the past year.

In January, the company recruited nine staff from the now defunct solutions company, SolNet, to build up its Java services capabilities.

The group also took over the Sydney and Melbourne client base and staff of Dutch IT integrator, Pink Riccarde, last year.

Browne said Datacom would continue to look at acquiring further businesses which would help strengthen its IT services skills on a local front. "We see the market opportunity for us in filling the gap of systems integration companies with an Australasian focus," he said.

Although its NZ operations continue to flourish, Browne said Datacom expected the majority of its growth to come from its Australian business.

"We recorded $12 million in revenue across Australia five years ago; this has grown to $70 million last year," he said. "Australia holds the big opportunities for us."

An overall trend towards consolidation in the IT services market also created opportunities for providers that could remain vendor-independent, Browne said.

"What we don't plan on is doing anything to align us with a particular telco or vendor," he said. "There's opportunity for a vendor independent services provider - which is what we see ourselves as."