Integral Technology Group says the 100 per cent stake it has bought in Axon Computer Systems will create New Zealand's largest privately-owned IT company, with 360 staff.
David Sutherland, now executive chairman of Integral and Axon, predicted the two companies' combined revenue would reach $150 million within the next 12months.
He said he was unable to disclose how much Integral paid for its acquisition.
"I can say [both companies] came to the conclusion in the end, after a bit of pain, that it was a fair price," he said.
Sutherland said the two companies shared similar histories and the acquisition "made a lot of sense".
Customers of both companies would benefit from the combination of Axon's "unique pedigree" in managed services and Integral's integrated software systems, he said.
Sutherland said the details of joint projects that would take place between Axon and Integral would be announced shortly.
The merged companies would be managed by a new team made up of Axon and Integral staff.
The majority of staff in both companies worked in service delivery roles, which would not change, Sutherland said.
Axon's chief executive Scott Green would assume an advisory role to the board for a period before moving on.
Green said the acquisition represented a good outcome for Axon's stakeholders.
"Four-and-a-half years ago I took on the CEO role at Axon with a brief from Axon's majority owner Matt Kenealy to grow the enterprise value of the company and to realise strong returns for the shareholders. That mission is now accomplished," he said.
How they stack up:
Axon
* Founded in 1986.
* Provides managed services of IT systems for companies including Air New Zealand, Mighty River Power and PGG Wrightson.
* Has offices in Auckland, Hamilton, Wellington and Christchurch.
* Annual revenue of $90 million.
Integral
* Founded in 1994.
* Provides integrated software services aimed at improving business function to organisations including Foodstuffs and Kiwibank.
