Brennan acquires SCentral, signals more buying

Peter Dinham
Wednesday, 04 November 2009 06:16

IT Industry - Strategy

Mid-market vendor, Brennan, has acquired IT services provider, SCentral in a deal which the company says will boost its revenues by 50 percent, extend its customer base and reach into Australian regional markets.

Brennan managing director, Dave Stevens, says the SCentral deal is the company’s fourth acquisition and more are likely it will “continue to examine appropriate acquisition targets” as it looks to increase scale and dominance in the mid-market technology services sector.

According to Stevens, Brennan will seek further acquisitions that provide positive earnings in a minimal time period and have a mid-market focus. “Central to our growth strategy is building our reputation as the leading provider of IT&T to the mid-market. Acquisitions, working with partners and building out our own products will play a key role in our growth this financial year.”

Stevens also said that the deal, for an undisclosed sum, is “good news for clients and staff and supports the company’s desire to increase scale as well as organic growth this year. The deal will add 50 percent per annum to Brennan’s revenues as well as extend our customer base and geographical reach into regional centres including Newcastle.

“SCentral provides a natural fit for Brennan. Both companies target the mid-market and have strong services businesses and IT certifications,” Stevens said, and he cited SCentral's direct relationship with HP and its Citrix capabilities as key attributes that would deepen Brennan's offering.

Under the agreement most of SCentral’s 75 staff will be retained, but SCentral's managing director, Peter Mavridis, will not be transitioning to Brennan.

“Our priority over the coming weeks is to ensure the smooth transition of SCentral’s customers and staff to Brennan. We are committed to investing in our people, R&D and infrastructure to support our growth and allow us to innovate in new service delivery and customer service,” Stevens said.