Data#3's John Grant to step down

Data#3’s John Grant will step down as managing director of the biggest Australian IT service provider at the end of next year, with deputy Laurence Baynham appointed CEO today.

A leading figure in the Australian IT channel, Grant’s departure comes after 18 years as managing director at Data#3 and 34 years at the company.

He will step down from the top role on 31 December 2015, though will continue to remain involved with Data#3 as shareholder and chairman of the board of Discovery Technology and member of the Business Aspect advisory board.

His succession plan has been a year in the making, with the Data#3 board approving the Grant’s recommendation that Baynham step into the chief executive role. Baynham has been with the IT provider for 20 years, including 10 years as group general manager.

Until Grant steps down, Baynham will be responsible for all day-to-day operational and planning responsibilities. Grant will continue to work on certain strategic projects as well as Data3’s acquisition interests, including Discovery Technology and Business Aspect, as well as leading any future M&A activity.

Data#3 chairman Richard Anderson said Grant’s leadership “outstanding” and he was deserving of the “highest accolades”.

Grant said he had enjoyed his time “enormously” at Data#3. “It has become a great company with a remarkable team,” he told the company’s annual general meeting.

He also described Baynham as a “committed and loyal deputy”, saying he was “totally comfortable that we will achieve an effective transition.”

The long period of transition was designed to ensure that there would be a smooth transition, Grant said.

“With 10 years’ experience in running the majority of the business through the lines of business and the states, we expect Laurence will readily accommodate the additional management responsibilities of CEO and I will work with him to transition the relationship with the investment community and our shareholders.”

Grant is also known as the inaugural chairman of the Australian Rugby League Commission, as well as his previous rugby league career playing for Souths Brisbane in the 1970s and representing Australia in the World Cup.

Speaking to CRN in August this year, Grant talked about how the company was coping, given price pressure from customers. Revenues at Data#3 climbed to a record $833.6 million in the 12 months to June 2014, though net profit after tax fell by 38 percent to $7.5 million.

"Customers have pretty significant market leverage at the moment. They can, and are, creating competitive tension, and what happens when you create competitive tension is it squeezes margin. We have never seen it as intense as it is now," he said at the time.