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IBM Acquires Logicalis Australia and New Zealand

  • 29 March, 2004 10:30

<p>IBM today announced the acquisition of the Australian and New Zealand operations of Logicalis for AU$88.5 million.</p>
<p>A few key points to note:</p>
<p>- Logicalis is a market leader in professional services, IT network integration and integration services for next generation technologies, including IP (internet protocol) telephony and voice over IP solutions.</p>
<p>- According to IDC, the Australian network consulting and integration market is growing at 8.3% per annum, worth an estimated AU$595 million by 2006.</p>
<p>- IBM has acquired Logicalis for its skills and expertise in network services.</p>
<p>- As per Logicalis' interim financial report for the 6 months to August 31, 2003, Logicalis (A/NZ's) revenue for that period amount to AU$64 million.</p>
<p>- The acquisition expands IBM's capabilities in the mid-market.</p>
<p>If you would like to speak with an IBM representative please call me on 02 9956 5733.</p>
<p>IBM Acquires Logicalis Australia and New Zealand</p>
<p>Sydney, AUSTRALIA, 29th March 2004 - IBM today announced that it has acquired the Australian and New Zealand operations of Network Services integrator, Logicalis Group Limited, for AU$88.5 million. The acquisition enhances IBM’s existing capabilities in network consulting and integration, extending its capability to assist clients with business transformation.</p>
<p>Logicalis Australia / New Zealand are part of Logicalis Group Limited which is part of Datatec Limited, a company listed on the Johannesburg Securities Exchange (JSE: DTCJ.J). Logicalis Australia / New Zealand, which trades in New Zealand as Logical CSI, is a market leader in professional services, IT network integration and integration services for next generation technologies, including IP (internet protocol) telephony and voice over IP solutions.</p>
<p>Brendon Riley, General Manager, IBM Global Services, said that the acquisition enhances IBM’s ability to deliver business value to clients of all sizes.</p>
<p>"Over the past 20 years Logicalis has built a world class reputation as a leader in Network Services. The acquisition of Logicalis enhances IBM’s capabilities in network consulting and integration in Australia and New Zealand - an area our clients have identified as fertile ground for business transformation projects."</p>
<p>The benefits of Network Services are particularly relevant to medium sized enterprises that seek to achieve integration of business processes and achieve business transformation to become more resilient, focussed and responsive to their clients. Logicalis has particular expertise in the design, build and management of converged network solutions for medium sized businesses, which reduce infrastructure costs and improve organisational collaboration.</p>
<p>"We are experiencing strong interest from our clients in Network Services skills. By acquiring Logicalis’ Network Services expertise, IBM is well positioned for alliances with local and international telecommunications companies to assist with the development of next generation IP services," said Mr. Riley.</p>
<p>Stuart Hendry, Managing Director, Logicalis Australia, said, "Having partnered with IBM Australia on customer engagements since 1998, our teams already have an excellent working relationship. We are both service based with an overwhelming commitment to customer delivery. These common values, together with IBM's desire to grow its core capabilities in convergence, security and managed services means that this change of ownership is great news for our customers and offers excellent career opportunities for our staff."</p>
<p>The combination of IBM’s Network Services capabilities and industry leading alliances with network solutions providers, such as Cisco Systems, Nortel Networks, Nokia, Avaya and Foursticks, will enhance IBM’s capability to develop integrated client focussed solutions.</p>
<p>The Logicalis acquisition supports IBM’s on demand strategy to integrate clients existing infrastructure with their core business activities, across their whole company and entire value chain, from suppliers to customers, providing better economics and greater opportunities for growth.</p>
<p>Logicalis’ employees and operations in Australia and New Zealand will join IBM Global Services.</p>
<p>Notes to editors:</p>
<p>Network-based services, as part of an overall business transformation solution, are a key source of competitive advantage - allowing companies to increase responsiveness and enhance business performance.</p>
<p>According to IDC the Australian network consulting and integration market is growing at 8.3% per annum, worth an estimated AU$595 million by 2006.</p>
<p>Network Services are a key focal point for integration of business processes. For example, by integrating e-mail, voice, fax and other telephony applications onto a single communication network, companies can lower overall costs and increase efficiencies. An integrated IT infrastructure allows employees to access and seamlessly interact with common applications and data.</p>
<p>Converged network solutions allow companies to integrate voice technology with the Web, allowing clients real time interaction with service representatives. A converged network system enhances the buying experience for clients, enabling e-businesses to achieve greater client loyalty.</p>
<p>In 2002 Logicalis was awarded Cisco’s Asia-Pacific Partner of the Year award. IBM was awarded Cisco’s Asia-Pacific Partner of the Year in 2003.</p>
<p>About IBM Global Services</p>
<p>IBM Global Services is the world's largest information technology services and consulting provider, generating record revenue and signings in 2003 of $42 billion and $55.5 billion, respectively. Some 180,000 professionals in more than 160 countries help clients integrate information technology with business value - from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services.</p>
<p>Leveraging IBM's unequalled scope and scale, IBM Global Services delivers integrated, flexible and resilient processes -- across companies and through business partners -- that enable clients to benefit from the on demand business model by saving money and transforming their businesses to be more competitive. For more information, visit http://www.ibm.com/services/au/</p>
<p>About Logicalis Australia</p>
<p>Logicalis Australia was previously known as Logical in Australia until the company was re-branded on 1 November 2003. Logicalis is an international provider of IT integration solutions, employing over 1,000 staff worldwide including highly-trained service specialists who specify, design, deploy and manage IT infrastructure to meet the needs of over 5,000 corporate and public sector customers. Logicalis maintains strong alliances with technology leaders such as IBM and Cisco.</p>
<p>Operating in the Pacific region since 1981, Logicalis is one of Australia’s largest systems and network technology integrators. Logicalis has built an enviable reputation in the market for delivering high quality end-to-end solutions, and maintains a high level of support skills in order to maintain and improve the operation of their clients’ data and voice environments.</p>
<p>Logicalis Australia / New Zealand was part of Logicalis Group Limited which is a subsidiary of Datatec Limited, a US$2bn company listed on the Johannesburg Stock Exchange. With its international headquarters in the UK, Logicalis Group Limited has revenues in excess of US$400m from operations in nine countries, including extensive coverage of the US. For more information, go to www.logicalis.com.au</p>
<p>For more information, please contact:</p>
<p>Reuben Young</p>
<p>Communications Manager - IBM Global Services, Australia / NZ</p>
<p>Mobile: 61-(0)-401-712-676</p>
<p>e-mail: reuben_young@au1.ibm.com</p>
<p>Blair Earl</p>
<p>TEXT100</p>
<p>Ph: 61-(2)-9956 5733</p>
<p>Mobile: 61-(0)-402 031 064</p>

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