Cirrus Networks has been earmarked for a contract to provide IT managed services to heavy earthmoving equipment supplier Emeco Holdings for an undisclosed sum.
Perth-based Cirrus told the market today it had received a letter of intent from Emeco for a three-year outsourced IT managed services contract, with Cirrus to begin a transition process next month.
“An intensive project will be undertaken to transition the organisation onto cloud based infrastructure which will then be supported by a proven service delivery program,” Cirrus said in a statement.
“The cost-effective IT services will make way for a clear avenue toward greater efficiencies and innovative solutions, which ultimately will enhance Emeco’s group IT services and provide savings to their total ownership cost base.
“The new arrangement will assist Emeco with its integration with Andy’s Earthmovers and Orionstone and will contribute towards merger operating cost synergies.”
Cirrus managing director Matt Sullivan said the company had been providing IT services and infrastructure to Emeco for the past three years.
“We are delighted that Emeco has acknowledged our proven capability and entrusted Cirrus as the partner of choice to deliver their group IT services,” he said.
"Emeco is a model partner. They have a progressive, innovative and growth aligned culture, which is very similar to Cirrus. We are excited at the potential mutual benefits the contract can deliver.”
Emeco managing director Ian Testrow said outsourcing IT services to Cirrus would allow the company to concentrate on integrating core business while having comfort that its ICT infrastructure would incorporate the merged business (with Andy’s and Orionstone).
“Cirrus Networks are aligned with our continuous improvement focus. They will work as our partner to extract cost synergies from the expanded business and will provide a strong ICT platform that will facilitate our strategic objective of widening Emeco’s value proposition,” he said.
“I have been very impressed with how Cirrus Networks has responded to this opportunity. Their team has been very engaged and focused on providing Emeco an innovative solution.”
Cirrus and Emeco shares were unchanged at 2.3 cents and 8.5 cents each, respectively, at 11am.