Perth services group wins investment from Compaq

West Australian outsourcing and systems integration player AMCON Solutions Group has been boosted by a $A3.15 million investment by Compaq Computer as the two companies seek to exploit the WA State Government's "Buy Local" policy, which forces government agencies to direct 70 per cent of their acquisitions through local companies.

The vendor has spent $3.15 million to take a 15 per cent stake in ASG, which has recorded annual revenue growth of around 90 per cent year-on-year since establishing itself in the Western Australian market in 1996.

Ken Maynard, state manager of Compaq Computer Australia, Western Australia, said it was unlikely that WA-based channel companies would be concerned that a vendor was taking an interest in local services companies, claiming Compaq's services capabilities should be considered separately from its role as a vendor.

"In Western Australia, Compaq hasn't been able to offer the range of services we offer elsewhere," he said. "This deal is of benefit to our services division, which has been somewhat under-represented in WA over the last few years."

As a result of the deal AMCON will also gain access to Compaq's technology, services facilities and marketing expertise, both within Australia and internationally. "The reputation we have established in outsourcing and systems integration will be greatly enhanced through this partnership," acknowledged Geoff Lewis, managing director of AMCON. "Using our strengthened financial base and with Compaq's support, we can begin moving into international markets such as the Asia/Pacific and United Kingdom."

Under the terms of the deal AMCON will be granted access to Compaq's Management Service Provider Centre in Perth, which it will use for the provision of ASP and help desk services, as well as remote management solutions.

In return, Compaq will find itself in an easier position to secure WA State Government contracts. The Western Australian Government has introduced a "Buy Local" policy where at least 70 per cent of Government spend on goods and services must be allocated with local companies.

"Our existing and new customers will benefit from the boost to our expertise and quality systems as we continue providing them with expert advice and cost-effective solutions," Lewis claimed.

Extra content courtesy Australian Reseller News:

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