Five administration staff will be let go at Australian software developer Software Traction after it was snapped up by New Zealand IBM services company Certus Solutions.
According to Certus Solutions CEO, Brian Allen, the staff redundancies were “unavoidable”.
“They had a company accountant and we have three so it was just situations where they had duplications," he said. "Customer-facing staff will not be affected."
Certus Solutions will keep Software Traction’s Canberra, Perth and Adelaide offices open while its staff in Sydney, Melbourne and Brisbane will be relocated to work with its employees.
Allen said the company acquired Software Traction because of its development of IBM Rational and Tivoli software applications.
He declined to comment on the value of the deal. Software Traction has annual revenues of $9 million.
The latest acquisition takes Certus Solutions’ income forecast to $50 million and its headcount to 100 employees with offices in Brisbane, Melbourne, Sydney, Auckland and Wellington.
“We’ve been growing at a rate of 50 to 60 per cent per year and we see that continuing in Australia because of the size of the IBM services market,” said Allen.
More expansion within Australia through organic growth and acquisition is planned.
In June 2009, Certus Solutions acquired Australian IBM software company Eos Solutions and took over its operations in Sydney, Melbourne and Brisbane.
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