The New Zealand unit of UK IT services company Dimension Data spent $64 million acquiring Integral Technology Group, allowing it to double sales last year, its accounts show.
The purchase price is disclosed in the 2011 financial statements of Dimension Data New Zealand, which integrates online business services. Dimension had sales of $223.4 million in the year ended Sept. 30, of which $125.6 million, or 56 percent, was attributed to Integral.
Dimension NZ posted a loss of $7.8 million last year, reflecting an $11.4 million global licence fee paid to a related party, Datacraft Asia, for the use of intellectual property. Excluding depreciation, amortisation, interest and other expenses, earnings were about $24.5 million.
London Stock Exchange-listed Dimension Data bought Integral in 2010, five months after the rival firm spent as much as $18 million buying Axon Computers to create what was at the time touted as creating New Zealand’s largest locally-owned, independent, privately held IT services firm.
"Taking control of Integral Axon will enable the company to extend their geographical coverage and diversification of clientele," Dimension said in its annual statement. “The acquisition is expected to provide an increased share of the IT services and solution in the market through access to the acquiree's customer base," the company said.
Dimension’s New Zealand unit began life as Datacraft, part of a group that operated Asia-wide. It rebranded to Dimension last year.