Integral buy of Axon could create $150 million IT firm
- 20 April, 2010 22:00
If rumours that IT services provider Integral Technologies is planning to buy Auckland-based Axon pan out, a new $150 million IT company could be set to challenge the local market. Axon today conceded staff have been told about discussions around the sale of the company, but refuses to confirm rumours a conditional agreement is in place with Integral Technologies.
"There have been communications with staff around some discussions we've been having," says Axon CEO Scott Green.
To the suggestion of a conditional agreement he says: "That's not something we are discussing."
A combined organisation would have revenues approaching $150 million, with Axon’s website stating its annual revenues are approaching $100 million and Integral predicting in 2008 that it would become a $50 million business by the end of 2009. Axon has in excess of 250 staff and was formed in 1987, while 16 year-old Integral has about 130. Each firm has offices in the main centres, with each headquartered in central Auckland suburbs. Prior to Axon, Integral has acquired four companies in the past five years – CSI, Acumen, Quanta and most recently APL Plus in 2008. In the past three years each company has won local IBM and Microsoft partner awards. Integral is an IBM premier partner and Microsoft Gold partner, and Citrix, Cisco and VMware are among its other vendor partners.
Earlier today, Green told Computerworld rumours have probably been driven by the fact that Axon’s majority shareholder, former CEO Matt Kenealy, “isn’t involved in the business on a day to day basis".
“As to when he may want to realise his investment, there have been many conversations over the years with parties who are interested in our business, but I’m not in a position to confirm anything about the current rumour.”
Integral managing director Ray Noonan also declined to comment.