Commander to carry out review of Volante
- 19 April, 2006 14:36
With Commander hitting its 90 per cent share target, the focus shifts to what will happen after the completion of its hostile takeover of Volante.
Commander managing director, Adrian Coote, said the two companies had historically worked in complementary markets. A three-month review of Volante operations was planned.
"We made our bid on a hostile basis and, as such, haven't had access to due diligence information," he said. "It's impossible to say what we'll do until we get inside and start talking to management. Decisions will be made on a factual, rather than emotional, basis."
The Ipex PC building business, bought by Volante two years ago, has seen its market share fall away dramatically. But while Commander typically resells major brands like HP, Toshiba and Acer, Coote hinted there could still be a place for Ipex in its stable because some contracts required locally built machines.
"There are local content issues in some government contracts and there are companies that still like to buy Australian," he said.
Staffing is another area that will come under the microscope during the review.
Coote said staff cuts would be made where necessary.
"It would be silly to say we wouldn't [make cuts] if we found some overlap," he said. "But both companies are customer-facing and we won't see any reduction in client numbers following the acquisition."
The future of the Volante name would also be considered as part of the review. Commander was a well-established brand in medium enterprise, according to Coote, while Volante was strong in government.
"There may be a case for maintaining both brands," he said.