Brisbane's Dedicated Servers has bought competitor Burst Networks for an undisclosed sum.
Burst, run by a former employee of Dedicated Servers, operates virtual private servers from Dedicated Servers' Brisbane data centre and the Vocus data centre in Sydney.
Dedicated Servers is a provider of server solutions to Australian web hosting companies and other organisations.
Company chief Jon Eaves said that about 70 percent of Burst's services ran on infrastructure owned by Dedicated.
"[The outstanding work] is really just a billing migration onto our network," Eaves said.
He said about 20 Burst servers would be shifted into Dedicated's data centre in Brisbane. Burst's servers in Sydney would remain in the Vocus Sydney data centre.
Burst founder Jake Wicks has taken a role as a support engineer at Dedicated Servers as part of the deal.
Wicks had worked for Dedicated Servers before founding Burst Networks.