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Compaq invests in WA company

THE US Compaq company has acquired 18.8 per cent stake in the Perth based Amcom Solutions Group in its upcoming float that is slated to raise $10 million.

The investment of $3.15 million values the company at $17 million and makes it a cornerstone in the proposed listing. Management will retain the balance. The offer opened on March 13 and closes on April 11.

Compaq is one of the top five system integrators in the world and was one of a number of companies to approach ASG. The approach was accepted because of a number of advantages the Compaq alliance would offer ASG.

They include Compaq’s offer to aid ASG’s planned move into the UK and Asia Pacific markets, Compaq’s desire to team with ASG on outsourcing opportunities, and Compaq’s products and services that will be made available to ASG.

It is unusual for an international company like Compaq to take an investment — it would normally either forge a partnership or make a takeover of the company.

“Compaq’s minority shareholding has secured ASG’s independence allowing it to maintain and further develop relationship’s with other channel partners including Fujitsu, IBM, Sun, Microsoft, DMR and oracle to develop solutions that best suited clients needs,” ASG’s managing director Geoff Lewis said.

“But it will also give ASG access to Compaq’s latest technologies as well as access to the IT Network, as well as strengthening the company’s financial base.”

He said ASG had achieved annual revenue growth of 90 per cent since starting in 1996 and had been profitable for the past three years.

“ASG has projected growth in revenue and profit for the financial year ending in June 2001. Projected revenue up from $10 million to $24 million and pre-tax profit projections up from $762,000 to $4.3 million,” said Mr Lewis.

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