Cello has kicked expansion plans into overdrive with the acquisition of Pentech Communications, taking control of the Wellington-based network specialist to bolster consultancy and services capabilities.
Effective 1 April, Reseller News can exclusively reveal that all Pentech staff and customers will join the Cello team with the combined entity taking up residence at new offices on Tory Street in Wellington.
Founded in 2007, Pentech goes to market with deep levels of networking expertise, specialising in the delivery of connectivity and communications solutions spanning infrastructure, security and unified communications.
“As Cello’s first acquisition, I couldn’t be happier with the fit,” said Mark Jurgeleit, CEO of Cello. “Pentech has a proud record in Wellington, and our team has worked with the team on several mutual customers for a number of years. This adds a consultancy and professional services element that has long been earmarked as a potential area for growth in our business.”
As part of the transaction, Ty Kahu will depart as CEO and managing director of Pentech.
“I’m delighted we are able to secure the long-term future of Pentech, and its staff and customers, through this opportunity with Cello,” Kahu added. “The businesses are philosophically aligned and I believe the Pentech team will complement the customer-centric approach to the corporate network that Cello clearly exhibits.”
Based in Wellington, Cello operates as an enterprise network services specialist supporting more than 400 customers at over 5100 sites nationwide. From a technology standpoint, the business provides a suite of private and public network solutions including WAN, SD-WAN, Internet, LAN, WiFi, security and cloud connectivity services.
“Cello has strong growth aspirations, and the addition of Pentech to our growing list of capabilities will strengthen our position in the network consultancy and professional services space,” outlined Andrew Allan, chairman of Cello.
Following the transaction -- for an undisclosed price -- Allan remained “open minded” to further acquisitions providing any potential deal “made sense” and was complementary to the Cello value proposition.
“Of course we would consider it,” he noted. “This acquisition makes sense for Cello, both financially and culturally. I’m confident both teams will blend their respective capabilities to ensure continuity for Pentech customers in the first instance, and to provide a broader service proposition in the longer term.”
The acquisition comes days after Darryl Swann joined the company board of Cello as the business welcomed new shareholders to fuel market expansion plans.
As reported by Reseller News, the addition of Swann is designed to help the challenger business “innovate and grow” in the months and years ahead, with a specific focus on building out network services offerings across key corporate and enterprise markets in New Zealand.
Inducted into the Reseller News Hall of Fame in 2016, Swann joins fellow inductee Allan (chairman) who was also honoured in 2017, as well as Murray Jurgeleit (former chairman) and Mark Jurgeleit (CEO) on the company board of directors.
The appointment also coincides with changes in Cello’s shareholding with Swann and Allan now buying into the business alongside both Jurgeleit shareholders and Guy Inglis, currently director of Northern Region.
“I’m looking forward to the opportunity to work with Andrew, Murray, Mark and the Cello team again,” Swann said. “Cello has been a real success story and I’m excited by the opportunity to do what I can to support its continued growth.”