| NetStar Group has agreed to a $US19.8 million takeover by UK-based Logicalis. NetStar provides IP network infrastructure services in Australia and other parts of the Asia-Pacific region.
Logicalis is using the NetStar acquisition to establish an Asia-Pacific presence, as the latter has units based in Australia, Singapore and Taiwan, with a network operation centre in Malaysia and further operations in Hong Kong and China.
NetStar has more than 1500 customers in the region. It was privately owned, with investors including Baring Private Equity Partners and Allen & Buckeridge.
The acquisition gives Logicalis 1900 employees in the UK, IS, Germany, South America and Asia-Pacific, with annual revenues of more than $US1 billion.
"This is a significant strategic development for us which immediately opens up new market opportunities in the faster growing economies in Asia-Pacific - a region that is important for both our customers and our strategic partners," said Logicalis CEO Ian Cook.
"NetStar with its tremendous customer base, has great capabilities and experience in the areas of network integration, data centre and managed services, with strong annuity revenues. We expect to further build upon the Cisco focused businesses and extend our offering to include data centre solutions to mirror the other existing Logicalis markets."
NetStar CEO Chris Meager said "We look forward to working within the Logicalis operation and the positive outcomes our customers and our business will reap as a result."
No indication was given concerning the intention of senior NetStar executives to remain with the company after the acquisition, or if any retrenchments are likely.
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