CN Group acquired by Viatek

By Freya Purnell
The CN Group of companies, including technology, infrastructure and hosting division, Computer Networks, and Consulting Networks, the business applications and infrastructure consulting division, has been acquired by managed IT services reseller Viatek.

With a heritage in managed print services, and 20 locally managed offices around NSW and Victoria including seven Fuji-Xerox dealers, Viatek is seeking to diversify its offering into cloud services, and push more into the large enterprise market.

Viatek CEO Michael Doery said, “The diversification and delivery of new technologies means we have to be able to adapt our business model not only to suit the market conditions, but to add real value to our customers across a number of different platforms. Customers are demanding access to cloud-based applications and services, and don’t necessarily want to use two or three different providers.

“It made sense for us to look for complementary acquisitions to help us grow and expand our business in order to satisfy that demand, and CN is a perfect fit.”

From CN’s perspective, Viatek’s strong balance sheet will allow the group to be more responsive to the changes occurring in the market, particularly in relation to SAP’s cloud solutions such as HANA Enterprise on Cloud and SuccessFactors.

CN Group CEO Brian Pereira (pictured) said, “We can now come in and make a strong play for developing capability in that space with Viatek’s support. So our customers can probably expect that they will see us move into the new spaces a lot quicker than we have in the past.”

CN will also gain access to Viatek’s SME client base, and Pereira said the company will look to grow its business particularly in regional Australia.

Doery said there are no plans to make any personnel changes as a result of the acquisition.

“We’ve bought a business with goodwill, and goodwill very much resides in the people and the branding, so those aspects will be retained. It’s a question of continuing to grow our client base rather than changing people,” he said, adding that the skill set of CN’s people was one of the key reasons for the acquisition.

According to Pereira, as usage of cloud solutions develops, consolidation within this market segment is inevitable.

“Customers recognise that they don’t need to own their IT infrastructure any longer, whether it’s servers and applications, or printers and communications devices.  They will look to providers who can provide a range of infrastructure and services, delivered via the cloud cost-effectively,” Pereira said.

CN is a certified SAP Hosting, Cloud and Services partner; a Netsuite Solution Provider partner; as well as a Telstra Enterprise and Government partner.

 

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