Midmarket telecommunications and IT services provider, Brennan, today announced it has acquired telephony business, TSA Communications, for an undisclosed sum.
Brennan is eyeing further acquisitions this financial year as part of expansion plans to dominate the midmarket.
TSA Communications is the largest NEC dealer in Queensland and provides telephony solutions such as PABX, VoIP, maintenance services, handsets and other hardware, which complements Brennan's existing range of voice, data and Internet solutions.
The deal will add an extra $5 million per annum to Brennan's revenues, as well as an extra 25 staff and 600 business customers.
As part of the agreement, Brennan also secures TSA's existing reseller contract with NEC, which will be extended to NSW and Victoria.
Brennan managing director, Dave Stevens, said the acquisition is part of the company's plans to increase scale as well as organic growth this year.
"One of the standout benefits of the acquisition is the potential to cross sell our complete range of IT&T solutions to a new customer base," Stevens said.
"There is a natural fit between the solutions TSA provides and the additional value we can offer, which enables us to grow share of wallet spend and overall client value.
"Acquisitions will play a key role in accelerating our growth strategy this year and we are currently evaluating another opportunity.
"However, maintaining strong organic growth is equally as important. This year we would like to deliver overall growth of 70 per cent plus."
TSA Communications managing director, David Asnicar, believes that in addition to the financial benefits, the synergies between the two businesses are great with both companies benefitting from a broader range of solutions to expand market reach.
"By joining forces with Brennan we are immediately able to meet the increasingly sophisticated needs of businesses looking for a converged solution," he said.
"We see a lot of value in Brennan's one stop provider approach and feel it will resonate well with our client base."
As part of the acquisition all TSA staff will relocate to Brennan's Brisbane office and the TSA brand aligned under the Brennan brand.
Asnicar and TSA CEO, Mark Condon, will not transition to Brennan, instead choosing to focus on growing TSA's burgeoning software business.