Hostech completes acquisition of regional resellers

ASX-listed Hostech Limited has completed its acquisition of regional resellers Axxis Technology, Accord and Aspirence for a total of $8.85 million in cash and shares.

Hostech Monday completed its acquisition of Axxis for $2 million including 17,857,143 in shares at 2.8 cents per share, and $1.5 million in cash.

Hostech acquired WA-based Accord in April for $6 million, including 96 million shares at 2.5 cents per share, and $3.6 million in cash, and Aspirence for a total of $850,357 including 3,571,429 in shares at 2.8 cents per share and $750,357 in cash.

Hostech completed its purchase of Anittel, one of four in this series of acquisitions last month. 

Founder of Axxis Technology and CRN columnist, Mathew Dickerson told CRN that being associated with a large public company has many advantages for his small business.

He said the conglomerate business will enjoy some natural advantages from scale and greater efficiencies in backoffice areas such as human resources - areas in which Axxis "couldn't always develop" on its own.

Dickerson said he has already taken advantage of marketing resources.  

"I expect our marketing to be better than before because suddenly we've got some expertise in the area," he said. "They're the things that I see to be big advantages immediately."

Dickerson said there is no immediate change to the day-to-day running of Axxis Technology and customers "won't see any change at all."

"In the short term nothing changes except those back end processes such as payroll and the running of the financial side of the business."

Six month plan

Customers can expect to see new product offerings in three months, Dickerson told CRN.

Hostech is handpicking a team of product specialists to travel around the country and consult with other staff across the company's 15 sites.

"One of the things that Hostech is doing is planning for people to move around Australia and communicate their expertise in areas like telecommunications to different parts of the business," he said.

"Marketing will increase over the next three months, and in six months time there will be full branding, he said. "We'll have one brand across Australia that takes care of all the IT and telecommunications.

Kazacos appointed chairman

Meanwhile, Hostech's board of directors has appointed Peter Kazacos and Steve McAllister to the board of directors. 

Kazacos will take up the role of chairman replacing chairman Campbell Corfe who will remain on the board. 

Kazacos is now the company's largest shareholder. 

Further reading:  An interview with Peter Kazacos on his plans for Hostech.