Di Data snaps up SecureData
- 26 November, 2004 13:27
Dimension Data has signed a heads of agreement to purchase local IT network and storage services integrator, the SecureData Group, for an undisclosed sum.
Dimension Data CEO, Steve Nola, said the company's strong technical skills, particularly in the storage sector, would be a strategic fit with its own data services business.
"Their high level of skills in storage complement ours - particularly in the archiving and back-up areas," he said.
"We have set ourselves an aggressive target in storage through our Data Centre Solutions division; SDG will accelerate this growth for us."
Nola said Di Data would offer positions to about 50 per cent of SecureData's 130 staff. Most of the job losses were expected to be in the administrations side.
Nola said there was a minimal amount of overlap between the two organisation's customer bases.
"We have tended to deal with the top 200 companies," he said. "SDG's client base is mostly the commercial and mid-tier sector."
As part of the new deal, the technology integrator will also take over SecureData's 51 per cent stake in SQL Services, which it acquired in November last year.
The remaining portion of the business is currently held by Computerland New Zealand, a Singapore-owned, NZ-based integrator.
Dimension Data will also acquire SecureData's intellectual property relating to managed data services.
SecureData's former subsidiary, DataBank, will not be involved in the impending transaction and will continue to trade independently, the company stated.
SDG has offices in Sydney, Melbourne, Canberra and New Zealand. It recorded nearly $50 million in revenue last year.
The integrator's managing director, Evan Penn, said it had received several acquisition offers, but was most impressed by Di Data's national scope and large customer base.
"Di Data gives us the support and strength to really be successful," he said.
The deal is subject to the completion of due diligence. Penn said once approved, it would only take a matter of weeks to integrate the two organisations together.
According to its recent annual report, Dimension Data Australia recorded a profit of $US14 million from $US481 million in revenue over its 2003/2004 financial year. Of this, managed and professional services contributed $US105 million.