Global comms vendor acquires Aussie reseller for $14m

Swiss communications vendor Ascom has paid $14 million to purchase its long-time Australian channel partner, Integrated Wireless.

"We were the exclusive partner for importing and distributing Ascom products in Australia, but we wanted a chance to be a part of a global business, to expand in both in Australia and Asia," said Leo Silver, managing director of the newly named Ascom Integrated Wireless.

The closing purchase price consisted of a debt-free value of $9 million plus $5 million cash, according to Ascom. The vendor is also obliged to pay an additional $1 million suspended for one year, based on revenue and profit targets.

"With this acquisition we do not only gain direct access to the Australian and New Zealand market, but also have the opportunity to combine Integrated Wireless’ software and integration competence with our existing portfolio," said Ascom CEO Fritz Mumenthaler.

Integrated Wireless had 62 staff members at the time of the takeover; all have transferred to the new Ascom subsidiary.

"We're now a wholly owned subsidiary and operate independently within the local market," Silver told CRN. "Ascom is keen to expand into Asia, and we have the delivery capability for that region."

Integrated Wireless specialised in mission-critical communications, starting with traditional paging and telephony then transitioning to the modern era with wireless technologies. The integrator's software division partners with Juniper and VMware, Silver told CRN.

"Voice messaging and location services is our focus these days and we aim to be carrier agnostic," said Silver. "A classic installation for us would be in hospitals."

Integrated Wireless' clients included hospitals, aged care, prisons, and manufacturers. Healthcare and aged care produced around 70 percent of its 2012/13 total revenue of around $13-14 million, according to Ascom.

"This transaction represents the next step in building and strengthening the leading position of our wireless solutions division in the global healthcare communications market," said Mumenthaler.

The Ascom Group specialises in wireless solutions and network testing, and employs 1600 people in 17 countries globally.