Data#3 acquires CICtechnology for $6M
- 11 January, 1999 12:01
Australian IT reseller Data#3 Limited today announced a $6 million deal to buy Sydney IT integrator CICtechnology, ending an eight month search for an acquisition target.
Both Data#3 and CICtechnology hold strategic reseller arrangements with key IT vendors including common relationships with Cisco, Compaq, IBM, Microsoft, Network Associates, Novell and SAP.
According to Data#3, it received a significant funds boost to the tune of $7.3 million last year when it listed on the ASX. The company reports in its first financial year as a listed entity it posted a net profit after tax of $2.23 million, based on record revenue of $69.24 million to June 30, 1998.
The company claims the acquisition - which is subject to shareholder approval on February 26 - will almost double the Queensland based group's annual sales to between $130 million to $140 million and boost employee numbers to nearly 500. The company did not release any details of possible staff losses.
Data#3's managing director, John Grant, said the acquisition elevates Data#3 into the "Tier One" level of national IT integrators.
CICtechnology generates around $55 million a year in revenue with offices in Sydney, Melbourne, Perth, Adelaide and Brisbane, and employs over 130 staff.