Auckland-based Lancom Technology has bought Redbrick Technology, boosting its managed services client base.
The deal, which closed on 1 November, will see Lancom increase its managed services revenue by some 20 per cent, client base by 75 and total headcount to nearly 70 people.
Redbrick’s directors and staff will all join Lancom at its Auckland premises, Lancom said today.
Lancom Group CEO Waruna Kirimetiyawa said it was Lancom’s ambition to become a premier trans-Tasman managed services and cloud solutions provider.
“Acquisitions are a strategic component of our planned expansion programme, but it isn’t without risk," he said.
"With Redbrick, we’ve identified and brought on a business highly complementary to our own, but which also takes us into specific verticals where we want to create focus.”
Those verticals are financial services and engineering.
“Redbrick is an accomplished provider of Microsoft cloud technologies; the work now is integrating the new client base with our existing one and making available our wider solution set which includes software development and automation to these new clients,” Kirimetiyawa said.
The addition of a net 75 new clients brings Lancom’s total to 480, with a three-year target of 1,000 "well on track".
This is the second acquisition made by Lancom this year, having added Australasian player PowerNet Computer Consultants in July.
Kirimetiyawa says the previous deal progressed well, with the integration strategy of meeting with all clients and explaining the broader Lancom value proposition.
“That’s certainly motivated us to continue seeking out further acquisitions of small to medium businesses with complementary offerings to our own,” he said.
Kirimetiyawa said that while automation technology helped, the challenge with this and any other integration was a human one.
“Adding value depends on knowing the people you’re looking after and their businesses, so there is a million miles of work to be done. We’ll spend the next few months engaging, understanding and learning with our customers.”
Lancom has the appetite for further acquisitions in the coming two to three years, he saidm with a specific focus on managed services providers looking to become part of a larger organisation.
“We’re always interested in hearing from other businesses and we have a particular interest in security, application development and systems integration capabilities, as well as vertical specialisation," he said.