PlesTel dials up $20m in reseller business

Business communications vendor PlesTel has made a serious play at gaining access to value-added data markets by acquiring two local integrators, Open Systems Integrators (OSI) and Component Suppliers International (CSI).

Financial details of the buyouts were not available, but as a result of the move PlesTel are claiming revenues will be boosted in excess of $20 million annually.

Nicole Wynne, corporate communications manager for PlesTel, told ARN the acquisitions were part of a broader strategy to distance itself from a reliance on communications products. With OSI's customer base being mainly in Sydney and CSI's in Melbourne, PlesTel has Australia's two biggest markets covered in its push to grow services and solutions revenues, she said.

"We are keen to get more heavily involved in the lucrative voice data services and Internet solutions markets," Wynne said. "Further down the line, we will also be looking closely at developing some new strategies and revenue streams that have now been made possible from these acquisitions."

Wynne also indicated the process of assessing these and potential acquisitions had been an extended one and further moves to consolidate a national presence in data markets were on the cards.

PlesTel's managing director John Dougall was enthusiastic about the potential of welcoming two leading voice/data integrators into the fold.

"The expertise of these two businesses will provide us with ready made skill sets in data solutions and will reinforce our strategy to expand the Commander brand beyond the traditional voice market," Dougall said.

Sydney-based OSI isolates its core competencies as being the design, supply and installation of LANs, WANs and standard operating environments, as well as being an ISP and offering network maintenance services. Meanwhile, CSI sees itself as being "a privately held reseller and IT solution provider", operating in Melbourne and rural Victoria.

Created in August 1998, PlesTel has over 800 staff and claims it has 47 per cent of the SME communications market, supporting over 135,000 Australian customers.

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