Official: Integral buys Axon
Long-rumoured deal poised to create the largest privately-owned local ICT company in New Zealand.
Last week The Channel reported that Integral's buyout of Axon had been completed and that a deal would be announced soon. Today the news was officially confirmed.
Integral Technology Group has acquired 100% of Axon Computer Systems. Integral's Executive Chairman, David Sutherland, says Integral and Axon will be merged to create New Zealand's largest privately-owned ICT services company with revenues approaching $150 million and around 360 staff.
"Both companies have achieved impressive growth thus far, but we felt the path to the next phase would have been slower if we each continued on our own. Together, we have the scale and the breadth and depth of capabilities to be much more effective as a business and in meeting the needs of our customers," he said.
Sutherland added that customers he has spoken to about the acquisition have been extremely positive: "Customers of both companies see the benefits from combining Axon's unique pedigree in infrastructure managed services with Integral's enterprise infrastructure strengths and integrated software solutions. The merged company will offer improved services and solutions reaching from the desktop to the data center. Both companies have invested in private cloud-based Software-as-a-Service offerings. Focusing this investment into a combined offering will create a more compelling cloud proposition for customers.
The management team of the new company will include key Axon and Integral staff. Axon CEO Scott Green will assume an advisory role to the board for a period of time. Integral's Managing Director Ray Noonan will become Managing Director of the new company and Integral Sales and Marketing Director Catherine Blinkhorn will take up the role of Director of Customer Engagement.
Sutherland will take an active role in the transition, collaborating with customers and staff to work through and communicate the changes. The new name and brand of the new company is still under consideration and a decision is yet to be made.
Axon's CEO Scott Green added that the acquisition represents a good outcome for all of Axon's stakeholders. "Four and a half years ago I took on the CEO role at Axon with a brief from Axon's majority owner Matt Kenealy to grow the enterprise value of the company and to realise strong returns for the shareholders. That mission is now accomplished.
"Axon enters this transaction on the back of significant successful strategic investments, strong brand recognition, excellent customer acquisition, satisfaction and retention, a strong 2009 financial result and a very positive outlook for 2010.
"I'm delighted that a New Zealand company has acquired Axon. The combined business is a major force in the IT industry in New Zealand, but importantly continues to offer public and private sector organisations a "local choice" provider that is committed to the success of New Zealand business and the broader economy.
"I am confident that Axon's strong 'customer first' culture will continue to grow under the new ownership, and I'm sure that the whole Axon team will work with Integral management and staff to make the merger a success.
Following the announcement Scott Green has told The Channel that the deal will deliver a lot of end value to customers.
Pictured left to right: Ray Noonan, Integral Managing Director; John Quirk, Axon Chairman; Scott Green, Axon CEO; David Sutherland, Integral Executive Chairman
