Generation-e buys Genesis MSP managed services business
- 18 July, 2011 18:14
Unified communications services provider, Generation-e, has purchased the managed services business from Genesis MSP for an undisclosed sum.
According to ASIC, a wind up order was placed on Genesis MSP on June 28.
Generation-e managing director, Biagio La Rosa, said it had taken on about 15 staff from the managed services side of Genesis MSP’s business along with its customers. This will see Generation-e rise to more than 80 staff. Genesis MSP was previously owned by Alan Chapman.
“We’ve had a managed services business for a while and needed to put more focus into it. The opportunity came along to scale and grow that business through this process,” La Rosa said. “We want to take the Victorian centric business and scale it up to our national operation. Our managed services business is now more substantial.”
More acquisitions were also on the cards, La Rosa said.
“The last couple of years have been fairly good to us and we’re trying to scale up effectively,” he said.
In July last year, Genesis bought the assets and customer contracts from troubled Melbourne reseller, TLC IT Managed Services, which was part of the TLC IT Group that went into liquidation. It was also run by Alan Chapman.
A Deed of Company arrangement was put in place on July 9 2010 through TLC IT Managed Services joint administrators Brad Tonks and Chris Wykes from Lawler Partners. But according to the administrator’s documents, there were a number of breaches in the terms of the Deed including Genesis’ failure to operate the business profitably, maintain accurate cash flow budgets and ensure statutory liabilities were paid on the due date.
The administrators called a creditor’s meeting in January 2011 to put forward a motion to terminate the Deed and wind up the company.