ICT recruitment firm Candle Australia has expanded into the IT services market with the acquisition of the managed IT services and IT professional staffing businesses of the Jav IT Group.
Established in 1980, the Jav IT Group is one of Australia and New Zealand’s emerging specialist IT services companies. Its services include IT vendor management, IT professional staffing, media logistics, data centre management and infrastructure services.
Robert Collins, Candle Australia managing director told CRN, the service provider has also made major investments in the data configuration facility, facilitating PC and server configuration, deployment and maintenance services.
“While we plan to preserve our core services in recruitment, the acquisition of the Jav IT Group is a natural next step in our strategy of diversification and growth via acquisition. Whilst our interests lie primarily in servicing lower risk areas of the market, there will be further opportunities for growth,” he said.
According to Collins the contract is subject to a number of ‘conditions precedent’, which are expected to be satisfied over the next few weeks.
Candle, via a newly formed subsidiary, will make an initial payment of $4 million with incentives for profit growth over the next few years. The acquisition will be funded by a combination of cash and scrip.
“Besides the financial rewards, the acquisition will provide geographic spread and new clients through Jav IT Group’s offices in Melbourne, Sydney, Brisbane, Auckland, Wellington, Kuala Lumpur and Beijing,” said Collins. “The service provider also has a core of 22 permanent staff and regularly engages around 300 professional IT staff on fixed contracts to service major corporations in the region.”
According to Collins’ Candle’s existing client relationships will not be impacted by this initiative.
Candle Australia provides technical, executive and office support personnel in the areas of information and communications technology, banking, finance, insurance, commercial accounting, library, records management, sales and marketing. Established twenty three years ago, it listed on the Australian Stock Exchange in 1997.
Candle Australia buys Jav IT for $4M
By Lilia Guan on Jul 13, 2007 7:05AM