Hostech buys 5Star Telecom and Officelink+

Stuart Corner
Sunday, 29 November 2009 07:09

IT Industry - Deals

Hostech seems less keen to talk about the considerable achievements of McConnell, who is presently listed on the website of Vocus Communications as its CFO, where it credits him with being one of the pioneers of the Internet in Australia.

"In 1988 McConnell worked with Geoff Huston to provide a permanent Internet connection for an ANU campus residence...In 1994 Mr McConnell and Mark Purcell connected the first permanent Internet connection for any Canberra-based ISP...The following year McConnell founded his own Internet consulting and ISP business - OfficeLink+. As the oldest Canberra based ISP, OfficeLink+ was responsible for connecting the Australian Parliament House to the Internet and provided ISP and consulting services to numerous large government departments."

At present Hostech is without a CEO. It announced at the time of its planned Samsung/Plant acquisition that the current CEO, Michael Abela, had resigned to address "certain pressing family issues that require his focus at this time." It said that executive chairman, Campbell Corfe, would "step into the role of managing the day to day operations of Hostech and that another director, Matthew Costello, would assume an executive role with responsibility for the financial affairs of the company.

In a statement the company said: "Whilst the board is disappointed that family issues have precipitated Mr Abela's departure, the change in structure is consistent with the transition planning previously undertaken by the board. The injection of management expertise gained from the Plant Communications merger will further assist during this time."

It added that: "Abela will be engaged by the company on an as needed basis to support the integration of Plant Communications over the next three months."

The acquisitions and appointments are subject to the completion of due diligence. The 5Star acquisition is below the value that requires shareholder approval and Hostech says it will move quickly to complete the deal and integrate 5Star into its day-to day operations. The OfficeLink+ acquisition will require shareholder approval, an EGM will be held once due diligence on OfficeLink+ is completed.