Sigtec is proud to announce the acquistion of Technisyst
August 2007 - News Article
Australian mobile computing solutions firm, Sigtec Group, today announced that it has completed a transaction to acquire Brisbane-based Technisyst, in a move that will bring its revenues to more than $35 million and establish it as at the clear leader in Australia’s mobile computing market.
Following its acquisition of Raywood Communications earlier this year, the acquisition places Sigtec Group in a unique position as the leader in mobile solutions and ongoing service for the emergency services, public transport, commercial transport and taxi operations sectors.
Sigtec specialises in real-time wireless data solutions, typically used in fleet management, vehicle tracking and related services to the taxi and commercial transport industries. Technisyst has two main product and service lines: public safety, including mobile dispatch and vehicle tracking solutions for ambulances, police and fire, and public transport, including mobile monitoring of buses, trains, trams, and ferries, related real-time passenger information systems and traffic light priority systems.
The two companies’ expanding international strategies will also work to the Group’s advantage. Technisyst has recently begun exporting to Europe, while Sigtec has set up sales operations in Dubai and the United Kingdom. The formation of the larger Sigtec Group - incorporating successful and complementary business units in multiple regions - will drive ongoing growth opportunities.
Sigtec’s Managing Director, John Thompson, said the acquisition would mean several significant changes for the Sigtec Group, in terms of market access and integration for the Group’s various services.
“This not only grows our revenue substantially, it also effectively diversifies our offering with complementary technologies and access to diverse market segments for all our products and services
“Technisyst is traditionally a more service-oriented company than Sigtec Group has been in the past, so going forward, we’ll be adopting some practices from Technisyst to drive organic growth from our existing customers. In addition, Technisyst’s customer base of government organisations and ‘blue chip’ corporations should provide access to markets that Sigtec Group has not tapped thus far,” Thompson said Technisyst will remain at its offices in Brisbane, with limited changes to company structure to accommodate the acquisition. The acquisition means that Sigtec Group will now employ more than 100 staff in Melbourne and Brisbane, and can focus on leveraging some of Technisyst’s high-profile projects, according to Technisyst’s Chief Executive Officer, Bill Delaney.
“We are currently expanding our RAPID Real Time Passenger Information Systems in Auckland and Melbourne, and have recently commenced work on the Australian Rail Track Corporation New Trains Communications project, as well as deploying our first RAPID installations in Poland. Becoming part of the Sigtec Group gives us the capacity to expand further while also improving service our existing customers,” Delaney said.
The Group will now focus on consolidation and integration, before looking outward again.
“We’ll spend the coming months bedding down these two major acquisitions in Raywood and Technisyst, and focus on hitting our earnings targets. It won’t be long, though, before we’ll be looking for acquisitions again to bolster revenues in the long term.
“We’re very excited about this acquisition. Sigtec Group has added extra revenue, but also fantastic talent in Technisyst’s existing staff, a service-oriented company to add value to our existing offering, a fellow leader across several diverse, but complementary, market segments and a secondary base from which to launch further R&D,” Thompson said.
Sigtec was founded in 1982 and is based in the outer Melbourne suburb of Seaford. Sigtec markets its solutions in Australia, New Zealand, the United Kingdom, Singapore and Indonesia. The company is majority owned by Kestrel Capital, a Sydney-based private equity firm.
Technisyst was established in 1995 in Brisbane and specialises in delivering mission-critical mobile data solutions to the public safety and public transport sectors.