Perth-based information technology company Datacom has swooped on the failure of its peer XciteLogic to expand into new territory.
The company has announced it is acquiring intellectual property and selected assets of XciteLogic, which was placed into administration two weeks ago owing debts of just less than $4 million.
“This will complement Datacom’s existing business in WA and beyond, allowing us to take to the education market, value-added services and infrastructure solutions as well as intellectual property assets,” he said.
Under the acquisition, Datacom will absorb all of Xcite Logic’s existing business and services, as well as offering roles for the current 25 Xcite employees.
Xcite was formed by Sean Cuneen and Tony Panetta. Between 2008 and 2012, revenue had grown by 600 per cent and staff numbers grew from 22 to a peak of 105.
Cuts had already been made to workforce numbers before Grant Thornton administrators were called in late last month.
Administrator Dino Travaglini told Business News the company’s downfall came through significant expenditure on development of intellectual property and rapid expansions interstate.
Failure to support the development and expansions with required capital resulted in XciteLogic owning a total of $3.8 million, with $1.1 million of that attributed to taxes owed.
The remainder was debts to suppliers, financiers and other creditors.