TelstraClear tipped to buy Axon

By Kate McLaughlin

Friday 24th September 2004

Eagle Technology chief executive Gary Langford believes TelstraClear will soon buy IT solutions company Axon.

Recent market talk has suggested TelstraClear has been sizing up Axon, Datacraft and Datacom.

Langford said he is keeping a "watching brief" on the market after Telecom's recent IT buyouts Gen-i and Computerland and the rumours about TelstraClear.

TelstraClear spokesman Matthew Bolland wouldn't comment on the matter.

Langford said there are several similarities between Eagle and Axon and he would be sorry to see another home- grown business bought out by a big telco.

Eagle is a privately owned Auckland-based company that has been in business for 35 years and has 135 staff.

Although its focus is on the New Zealand market, Eagle is making international inroads with products like BST Enterprise, a management tool for professional service firms.

Eagle distributes and implements the product throughout Australia, South Africa and Europe and runs a support hotline for those using its software as well.

It also has an Australian subsidiary, South Pacific Software Solutions.

Langford said there were dangers for domestic IT operators with powerful telcos moving in, as the telcos were able to bundle products together in a way that was difficult to compete with.

He said the fall out from the acquisitions affected the whole IT market as employees reacted to new management.

But in Eagle's case, this could prove to be a good thing.

Langford said Eagle's growth meant he was always on the lookout for "good people" and expected there would be talent available following the integration phase at Gen-i.

The changing shape of the IT market increases the need for the companies to be flexible and more than anything keep close to clients. Would Eagle sell? "It's fair to say that any asset is possible to acquire at the right price."

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