Brennan IT has acquired S Central in a deal which will boost the company’s revenues and geographic reach.
The deal, is expected to boost Brennan's annual revenues by potentially as much as 50 per cent and will extend the company's customer base and geographical reach into Newcastle.
According to a Brennan IT spokesperson, S Central’s “strong heritage” in the mid market, and services and customer base complement Brennan's, making it a good fit for the business.
According to the spokesperson, Brennan will continue to examine appropriate acquisition targets as it looks to increase scale and dominance in the mid-market technology services sector.
The deal follows the failed merger between ASX-listed ComputerCorp and S Central in September.
As reported by ARN, delays in progressing the acquisition resulted in the ComputerCorp board’s decision to pull the plug on the deal.
At the time, S Central owner, Peter Mavridis, said the company was unable to get the deal over the line with shareholders. He also hinted at cultural differences between the two organisations.
“At the end of the day, we delayed the transaction a couple of times because [S Central] shareholders didn’t approve it. That was still the case, so the ComputerCorp deal couldn’t proceed,” he told ARN. “With M&A, everyone knows there’s lots to fit including cultures and in the end, it didn’t work out.
“S Central is a services business and that’s our culture. Moving from a hardware to services mentality is not easy to do for any organisation.”
Mavridis said S Central had grown organically by 33 per cent year-on-year and insisted it was in a good position going forward.
ComputerCorp today announced it had changed its name to Synergy Plus Operations Pty Ltd to reflect the diversification of the company.
Peter Cappendell, acting chief executive officer, Synergy Plus, said the name reflects the company’s strategy of combining the enterprise level focus of the Synergy business and the existing diverse solution set of ComputerCorp.
Synergy Plus has more than 270 IT professionals in 11 locations providing services ranging from desktop break/fix through to enterprise data centre management. IT also provides managed services and outsourcing.
Shareholder approval is also being sought by parent company ComputerCorp Limited on 26 November 2009 to change its name to Synergy Plus Limited.