Logicalis has acquired 100 percent of Melbourne-headquartered Thomas Duryea Consulting in an all-cash deal for an undisclosed sum, creating a $120 million powerhouse IT provider.
In an email to customers, Thomas Duryea chief executive Andrew Thomas said the merger would "create one of Australia’s greatest integrators".
"This will provide us with an increased service capability, especially in the fields of networking and security," he said.
Logicalis is owned by Datatec, a global IT giant listed on the Johannesburg and London Stock Exchanges that also owns major technology distributor Westcon Group.
The merger creates an integrator with credentials from the desktop to the data centre, and expertise in storage, cloud, networking, security and ICT services.
Logicalis is a major Cisco partner, while Thomas Duryea is renowned for driving the growth of VMware in Australia and also has a long history with Microsoft.
The Thomas Duryea brand will remain in the market for the next 18 months and "operate as a Logicalis Group company", according Oliver Descoeudres, Logicalis Australia marketing director.
TD's Thomas and Logicalis Australia CEO Basil Reilly will keep their current job titles, he said.
Logicalis and Thomas Duryea are significant players in the Australian IT industry, though both posted less than stellar results in their most recent financial reports, according to data from corporate regulator ASIC.
Logicalis saw revenue fall nearly $16 million, or 23 percent, year on year to $53.2 million for the 12 months to 28 February 2015.
Thomas Duryea reported a fall of $3.2 million, or 4.7 percent, to $65.3 million, and a net loss after tax of around $7000 for its 2015 fiscal year. In the 2014 year, the company's revenue grew almost $13 million to $68.5 million and it saw a $238,000 profit.
The deal comes amid a frantic pace of consolidation in the Australian IT industry over the past two years.
Major deals include CSC's pending takeover of UXC Limited, Deloitte's purchases of Cloud Solutions Group and Dataweave, Canon's acquisition of a majority stake in Harbour IT and ASX-listed BigAir Group buying Oriel and Applaud.