One of Perth’s most successful technology businesses, IT infrastructure services group ComputerCORP, is set to change hands with the exit of its founders led by Hugh Smith.
One of Perth’s most successful technology businesses, IT infrastructure services group ComputerCORP, is set to change hands with the exit of its founders led by Hugh Smith.
While the details remain undisclosed, CFO Murray Mansell confirmed the three owners were selling their equity to a group of investors through a public company which has no existing role in the IT sector.
Mr Mansell said the management team would remain in place in an arrangement which could be “likened to a management buyout”.
He stressed there would not be an IPO and the firm would remain independent.
“It is exactly as we are now, nothing will change,” Mr Mansell said.
There was no disclosure from any party on the price being paid, but the company revealed turnover was on track to hit $150 million this financial year, up from $98 million in 2003-04.
Growth has largely been organic, though ComputerCORP has made acquisitions in Canberra and Tasmania during this period.
Mr Mansell said that the change in ownership would provide fresh capital to allow ComputerCORP to go to the next stage. Some acquisitions would be likely but the company would remain headquartered in Perth where around half of its business was generated.
Mr Smith said after 19 years with the business and spending the past few years expanding to create a national presence, funded from profit, he had lost his appetite for what was required to take another leap.
“It is relatively mature, what it needs now is to go to the next level,” he said.
“To do that it was a case of putting in more capital and three to five years more hard grunt.”
“That is a big psychological step.”
Having recently turned 56, he felt it was time to let the “young turks take a shot”, having reduced his role in the business during the past two years. Mr Smith and his business partner Rod Durston started the business in East Perth in 1987, later shifting to Mt Hawthorn and then to West Perth where it remains headquartered.
Mr Smith held 60 per cent of the business, Mr Durston 30 per cent and Michael Rickers 10 per cent.
It is understood that Mr Rickers remains in the management team while Mr Smith and Mr Durston have stepped down from day-to-day involvement.
Mr Smith said that despite his success, particularly in evolving ComputerCORP into a more service-orientated firm, he believes the business environment is getting tougher.
“Why would you be in business in Australia?” he said.
He believed the country was over-regulated, industrial relations was difficult and state-by-state differences really hindered business.
“People who don’t want uniformity in that kind of space are just adding to the costs of business,” he said.
“Daylight saving (WA’s rejection of it) is a tragedy for business, the lack of seven-day trading is the same problem.”
Mr Smith said he planned to turn his energies to property investment, which includes the Murray Street building in which ComputerCORP is headquartered.