Melbourne-based MSPs complete mega merger
- 04 October, 2016 08:44
Virage IT and PowerNet IT Solutions shake hands on mega merger deal
PowerNet IT Solutions and Virage IT have joined forces in an official merger transaction, bringing together two leading Melbourne-based managed service providers.
Representing 32 years of local technology expertise, the combined entity creates a market leading professional services and managed services provider, spanning a range of verticals in Australia.
Founded in 1994, PowerNet is an EMC, Cisco, Microsoft, SAP, Telstra and VMware partner in Australia, providing security, monitoring, mobility, servers, cloud and networking.
Meanwhile, Virage IT has been operating since July 2012, but has over 10 years of history through Pro.Integrations and Trinity Digital, with a customer set spanning from 20 to 1,000 users nationwide.
After first initiating merger talks in 2014, ARN can confirm that the deal has officially gone through, building on existing relationships and “several major synergies”.
“We are looking forward to bringing together these two companies who have so much to gain from joining forces,” PowerNet director, Daniel Williams, told ARN.
“Although both have varying disciplines and strengths, we share a lot of common goals and core values.
“The integration of the two companies will strengthen our offering to our clients and create great opportunities for our team.”
Prior to the closing of the deal, PowerNet and Virage were ranked 8th and 12th respectively in the MSP Mentor 501 for 2016, covering Asia, Australia and New Zealand.
Terms of the deal see Virage IT managing director, Paul MacNeill, take up a director’s role within the PowerNet business, with offices now located across Melbourne, Sydney, Brisbane and Auckland.
“Virage IT has seen tremendous growth over the last four years, having strengthened it’s managed services offering and climbed the ranks to be in the top rated MSP business for its size in Australia,” MacNeill told ARN.
“The strategic partnership with PowerNet ushers in exiting times for both businesses as we look to benefit from over 32 years of combined businesses maturity.
“The merger unlocks capabilities in strategy, scale and aligned focus as well as augmenting complimentary service offerings, a testament to the past success of both businesses.”
Since first striking up a partnership in 2014, both companies have worked on a number of projects over the past two years, with merger talks increasing at the turn of 2016.
Virage IT has a strong background in enterprise grade infrastructure and virtualisation technologies, culminating in the creation of the company’s own cloud infrastructure environment, provided to customers as a private cloud service or Infrastructure-as-a-Service (IaaS).
Complementing Virage IT offerings, PowerNet provides cloud migration solutions for businesses, alongside consulting, project delivery and strategy development.
Collectively, both businesses have diverse customer vertical experience and expertise, spanning education, transport, finance, logistics and legal through to retail and manufacturing.
“Both businesses have great people and culture; combining our powers, talents and expertise we will become a balance IT solutions provider who is both a high performance managed service and professional service provider,” Williams added.
Going forward, both organisations will continue to function as stand-alone businesses, with “some redeployment” in places.
“Both Virage IT and PowerNet both run pretty lean operations, so we’re focussed more on getting the right people and skills into the areas that they are best able to perform,” MacNeill added.
“We’re excited by the opportunity to bring together the executive and management teams from both businesses to harness the opportunity to grow as a whole.”
Looking ahead, MacNeill said by leveraging the already implemented EOS frameworks in PowerNet, Virage IT will embrace the structure and management of PowerNet in a "more holistic" business approach.
“With the group headed up by the existing general manager Alanna Kane, the new business will leverage the operational maturity of PowerNet to allow the business to grow together,” he explained.
Echoing MacNeill’s comments, Williams said the new look management structure will see the executive team and business model updated to incorporate the needs of Virage IT.
“When it is logical, the executive will apply their skills and disciplines across both businesses providing support and guidance with the view to keep both thriving businesses on the growth paths that they are on,” he added.