KAZ acquires Focal Systems

ASX-listed KAZ Group is back on the acquisition trial, announcing it has acquired Perth-based IBM and Microsoft Business Solutions reseller Focal Systems for an undisclosed amount.

As a result of the acquisition, KAZ would pickup Focal's 22 staff and eventually merge the business into its Western Australian operation.

The Focal name would disappear, said Michael Cook, founder and MD at Focal. Cook would assume the role of business operations manager following the acquisition.

Focal concentrates on IBM iSeries platform and Microsoft's Navision and Axapta ERP software suites.

Cook said synergies between KAZ's Western Australian operation and its own were first realised in early discussions between both companies. "We had a strong IBM business which complement's KAZ's national IBM relationship," he said. Cook claimed there was no "compelling need" for the company to be acquired or merge, but the synergies between both Focal and KAZ were strong.

Andrew Richardson, MD at KAZ Technology Services, claimed the decision to acquire Focal 'was based on extraordinary synergies' in the WA market.

"KAZ can now offer unparalleled level of service to local customers by cross-utilising resources across all areas of the business. This will include, for instance, providing KAZ's managed services to Focal's ERP and iSeries clients," he said.

He said that Focal had business and technical consulting services around Microsoft ERP software that were stronger than KAZ's offerings.

KAZ shares were trading at 39 cents this morning.