Fibre-optic network owner Amcom has bought Perth-based IT firm L7 Solutions for $15 million.
Amcom owns and operates over 2,100 kilometres of fibre-optic network in Perth, Adelaide and Darwin, catering primarily to businesses.
L7 Solutions specialises in the provision of IT integration solutions, managed services, advisory and related services.
It was established in 2004 and employs 130 staff, with approximately 200 clients across private and government sectors.
Amcom chief executive Clive Stein said the acquisition was an excellent strategic fit.
“It provides complementary product offerings and importantly, leverages our existing fibre network assets and opens opportunities to new services into our existing customer base,” Mr Stein said.
“The L7 Solutions business has an extensive skills capability that will enable us to accelerate our recently launched cloud offering.
“There are significant cross-selling opportunities into our existing 900 corporate and government customer base.”
The L7 Solutions business is expected to deliver at least $4 million in earnings in its first full financial year within the Amcom business, he said.
Amcom generated earnings of $28.8 million in the year to June 30.
L7 Solutions chief executive Matt Sullivan said the company was delighted to be joining Amcom.
"With L7's skill base and Amcom's infrastructure, we will be in an ideal position to provide customers with a comprehensive end to end solutions, which is a logical extension of their fibre and hosted product offerings," Mr Sullivan said.
