Queensland managed service provider, VTS IT Group has acquired the assets of Canberra-headquartered Dataflex for an unknown sum, less than two months after Dataflex went into voluntary administration.
According to Intermedium analysis of contracts published in AusTender , in 2010-11 Dataflex signed 172 contracts with a total contract value (TCV) of $18.7 million, but by 2012-13, its business had declined to 53 contracts worth a total of $5.0 million.
The Dataflex transition to VTS IT includes retention of the trading name, customer list and Dataflex’s remaining 12 staff. VTS IT has approximately 50 employees, Dataflex founder Brian Evan’s said in a statement on Tuesday 29 April including a sales and service team. Evans will be staying with the company.
VTS IT CEO Glenn Kennedy and partners John Henderson and Ian Hurley are leading the new company and anticipate growth in the next financial year.
Kennedy expects the buyout of Dataflex plus VTS IT’s earlier purchase of Queensland IT firm Down Microsystems could increase VTS IT’s turnover significantly Kennedy told CRN, “after growing to $12 million through the Downs buyout, "we believe in the next financial year, we will be looking at $30 million".
Brian Evans is upbeat about the future, “We will be bringing a terrific new model to the market, and of course supporting the current model, so it’s business as usual!” he said.
Kennedy told CRN that VTS IT “had negotiated with Dataflex's client base of major government agencies to maintain its place on supplier panels” and that they had "’agreed in principle’ to this novation of Dataflex's panel arrangements”.