Australian technology services company, UXC (ASX:UXC) has finalised an agreement to purchase Canberra-based specialist ICT services provider to Australian Security Agencies and the Federal Government, BCT Group Pty Ltd for a combination of cash and shares.

BCT is the sole Australian distributor of data search and categorisation solutions from Convera, and customer data integration technology (CDI) from Initiate. According to UXC, these solutions meet strict regulatory compliance and security requirements, and are used by government agencies around the world including the FBI, the US Department of Homeland Security and Canadian Health.

BCT uses these and other data management technologies to provide CDI, information management and categorisation services to the Australian Government and national security agencies.

UXC’s executive chairman, Geoff Lord, said, “BCT meets all of UXC’s acquisition criteria: it is a proven leader in its field; has strong financials; and, will significantly strengthen UXC’s capability to provide specialised services to Australian Security Agencies and the broader Federal Government market. The acquisition will immediately strengthen UXC’s growing position in Canberra.”

BCT will merge with UXC’s existing Canberra-based ICT security and infrastructure business, CNS/Itac. The combined business unit will have a team of approximately 30 information management and security specialists. It will operate within UXC’s Business Solutions Group.

BCT co-founders, George Katavic and Joseph Barbatano, will continue with the business in senior management roles. BCT’s professional staff will also remain.

“Given BCT’s existing client base and synergies with CNS/Itac, the combined business will possess one of the strongest CDI, information management and categorisation offerings in the Federal Government market. Increased access to specialist staff and resources, and the ability to contribute to UXC cross-group business opportunities will significantly bolster BCT’s existing business,” said Cris Nicolli, CEO of UXC’s Business Solutions Group.

UXC’s latest acquisition follows its recent announcement of a record half year profit of $6.8 million for the half year ending 31 December 2005.

UXC’s Business Solutions Group accounted for more than 70% of UXC's total revenue. It recorded revenue growth of 25% to $95 million for the half.

“UXC’s dual strategy of organic and acquisitive growth continues to deliver strong results for the business. We will maintain this strategy and continue to look at acquiring medium-sized firms with specific market expertise and leadership in a key segment,” said Nicolli.

The acquisition of BCT is the second in UXC’s investment plan in Australia and New Zealand which included the purchase of SAP services company, Oxygen, in December 2005.