Four Aussie IT firms to merge, plan to go public

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Four Aussie IT firms to merge, plan to go public
PS&C executives Adrian Wischer and Cass O’Connor with MD Kevin McLaine

Communications and consulting company Allcom Networks will merge with three solutions companies to form People, Services and Consulting (PS&C).

The Sydney-based company will merge with SAP partner Systems & People (S@P) and security companies HackLabs and Securus.

Each company will form one division of PS&C, including communications, consulting and security services. 

The merger will be funded by a public listing, with 25 million shares offered at $1 a share, representing a 49 percent stake of the total company.

 The $25 million of capital will "be used to complete the acquisitions and to fund future growth initiatives".

According to projected forecasts detailed in the company's prospectus, PS&C anticipates $75.5 million in revenues and net profit after tax of 5.2 million for FY2014. The estimated earnings represent 19 percent growth over the companies' combined sales revenue for the previous year.

Noted competitors include solutions providers Oakton, UXC, SMS Management and Technology, and RXP services.

PS&C will have "in excess of 300 staff". Most of the staff will come from S@P, which has 240 employees working in offices situated in Sydney and Melbourne.

It is unsure where PS&C will be based – or which duplicate offices will be closed – as representatives could not comment at the time of writing.

Leading the company will be managing director Kevin McLaine. McLaine has more than 20 years experience in the market and has worked for companies including GE Capital, CSG and Shomega.

PS&C will commence trading on the ASX on 2 December.

Four become one

Sydney-based Allcom, which has 40 staff located in offices in Sydney, regional NSW and Papua New Guinea, will provide communications services such as network infrastructure, videoconferencing and managed services.

The 17-year-old company generated $20.2 million in revenue for the 2013 financial year, of which 46.8 percent was sourced from local and state government contracts.

Consulting firm and SAP integrator S@P has 240 staff located in its Melbourne and Sydney offices. The 18-year-old company generated $38.3 million in revenue for FY13 and services customers including Toyota, Schweppes, Fujitsu and Amcor.

PS&C's security division will consist of HackLabs and Securus. For the last financial year the companies generated revenues totalling $5 million, of which 36 percent was driven by business from the banking and financial services sector.

Combined HackLabs and Securus have 25 employees working in offices in Sydney, Melbourne and the US.

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