Alphawest buys PowerPlus business

Perth-based systems integrator and solutions provider, Alphawest, has acquired the information management business of PowerPlus.

PowerPlus’ information management business supplies, implements and supports advanced knowledge management and information management solutions.

As part of the acquisition, Alphawest will take on eight former PowerPlus staff and about 20 key customers in the corporate and state government sectors.

Director of sales and marketing at Alphawest, Steve McNally, Steve McNally, referred to the deal as a “skills acquisition”.

“PowerPlus has very strong technical people that have tremendous expertise in some very complex record management and workflow solutions," he said. "Some of the technologies they were skilled in were consistent with our technologies so there was a great deal of synergy between the two companies.”

The acquisition provides Alphawest with a leg up in the Queensland information management services market where it had a relatively small presence compared to its market position in the other states around Australia.

Traditionally, Alphawest has grown its business organically and, according to McNally, it would continue to do so. However, the company would continue to make strategic acquisitions “where it makes sense to do so”. McNally said Alphawest had no further acquisition plans on the horizon at this stage.

Having dispensed with its information management services business, Queensland-based service provider and application developer, PowerPlus, will focus solely on its workflow application development business.

Alphawest’s information services business, which includes document, content and record management, as well as imaging and workflow management, represents about 30 per cent of its total revenue, McNally said.

It’s a market segment that Alphawest thinks is loaded with potential, particularly in light of the new corporate governance recommendations issued by the government regarding the management and collection of company information records.

While the Australian government has at this stage only issued recommendations regarding corporate compliance, industry pundits expect the government to follow the US government’s lead, with the Sarbanes-Oxley Act, and introduce new legislation regarding information management.

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