IT services company Datacom has acquired Sydney-based Web and application development company Relate.
As part of the merger, both companies have formed a newly-branded entity known as Datacom Relate.
The new company also announced ambitious expansion plans as it strengthens Datacom's web and e-commerce capabilities, especially through Relate's skills in Microsoft.NET, SharePoint and BizTalk Server technologies.
Founded in 1990, Relate specialises in bespoke web-based business solutions ranging from simple websites to complex e-commerce environments.
Relate's client base includes commercial organisations such as Sydney's Cross City Tunnel and several government agencies. Datacom will relocate its existing team of 20 enterprise application developers from North Ryde to the city to join the acquired company's 35 solutions architects.
Datacom CEO Michael Browne says the acquisition is a strategic move that matches complementary competencies across the two businesses, and is already yielding dividends. "By partnering with Relate, Datacom gains a raft of new development competencies that will help us work with our clients in different ways to benefit their businesses, and allow us to make more substantial contributions through an expanded service offering," he says.
"I believe that combining Relate's expert skills with Datacom's proven capacity to deliver will prove to be a true differentiator in a market that continues to move towards commoditisation in many elements of the IT arena. "In fact, the market is already voting in favour of this merger," he added referring to Relate's newest client, Scouts Australia NSW.
Scout's will leverage the skills of the combined team to deliver Project STAR (Saving Time and Resources) — an initiative that will reengineer some 50 business processes and bring its entire operation online.
"I am confident further wins will see us meet aggressive expansion targets, including growing Datacom Relate to more than 200 people in the next three years," Browne said.
Vince Nicita, Relate's founder and now Datacom Relate's managing director comments, said customers will gain encompassing capabilities, such as network and platform design and deployment, secure hosting, and comprehensive operational support services.
"This means we can now service contracts that were previously beyond Relate's reach," Nicita said. This acquisition takes Datacom Australia and Asia's locally-based team to over 900 and Datacom Group's total development personnel to more than 500.
Datacom clients include Microsoft, Manpower, GE and the Norfolk Group.