Western Australian information technology and communications companies are continuing to spread their national influence, with Empired the latest to announce an east coast deal.
Western Australian information technology and communications companies are continuing to spread their national influence, with Empired the latest to announce an east coast deal.
The company, which has increased revenue 72 per cent since 2010, has bought Sydney-based firm eSavvy for $2.2 million.
The deal is expected to add $3.4 million to Empired’s annual revenue, which was $48 million in the 2013 financial year.
The purchase follows Empired’s acquisition of another east coast firm – Melbourne IT consultancy OBS – for $15 million in September last year. That company is expected to contribute $32 million in annualised revenue.
The eSavvy business will be integrated into Empired’s OBS business unit, which Empired managing director Russell Baskerville said was opening doors to new markets.
Earlier this month, ASG Group also reported strong traction interstate. It has signed $21 million in contracts for its cloud-based services, bolstered by agreements with federal agencies such as the Australian Transport Safety Bureau.
The company said that particular agreement built on the success of services it had provided to the Australian Tax Practitioners Board.
ASG has also expanded services provided to engineering and project services contractor Clough and the federal government’s Future Fund.
ASG Group managing director Geoff Lewis said the company’s increasing relationship with federal agencies was an indication of the shift towards cloud computing.
“The traditional resource intensive model involving agencies owning assets with the associated capital and operating costs is not sustainable,” Mr Lewis told Business News.
Melbourne University has also contracted ASG Group to provide core business applications.
Like ASG, Amcom Telecommunications has identified the tertiary sector as a potential growth market.
Amcom has entered an agreement with the Australian Academic and Research Network (AARNet), which provides a data network for 39 member institutions.
Under the agreement, AARNet will act as a facilitator for institutions wanting to utilise Amcom’s cloud-based telephony services.
Amcom chief executive Clive Stein told Business News it was still early days for the company in the tertiary sector, but it provided a significant opportunity.
“This has really positioned us incredibly well to service a big market,” Mr Stein said at the time of the announcement.
“It’s a very large market and it’s very significant.”
Meanwhile, WA’s fourth largest ICT company, Ajilon, has partnered with global information technology company ITC Infotech to bolster its services to Australian clients.
ITC Infotech employs more than 6,000 people with contracts in the US, Europe, Middle East and Asia Pacific.
Ajilon said the partnership would enable it to improve its service to local customers by utilising ITC Infotech’s offshore capability.
However, the strength of local market has overwhelmed one of the sector’s smaller players, with Perth-founded company Red 11 absorbed by New Zealand-owned company Datacom last month as a result of an increasingly competitive sector.