Convergence in the security and networking market started early in 2006 with the merger of VARs Axial Systems and Network Alliance.
The merger will create a firm with a turnover in excess of £10m. Axial Systems specialised in network management and security – its main vendors being McAfee, Packeteer, Network General and Netoptics, while Network Alliance was a consultancy-based VAR that partnered with vendors such as Packeteer, Netdialog, Juniper and Trapeze. Both firms will now operate under the name Axial Systems. The financial details of the deal were undisclosed
Paul Spencer, managing director of Axial Systems, said: “We had two good businesses that had a lot in common, but we never seemed to end up competing with each other because both companies had niches where they were strong. It seemed a very obvious fit and combining forces makes for a bigger, stronger organisation.
“For us to have found the equivalent staffing levels that we have now got with Network Alliance would have taken a year or more so it has helped us in that process as well,” he said.
Adam Woolhouse, formerly managing director of Network Alliance, and now major accounts manager at the new firm, added: “There was a lot of synergy between the two firms although they were bigger than us, but it will give us a lot more clout in the marketplace. It made a lot of sense to merge the two companies.”
Woolhouse said the merger will open up more product lines to former Network Alliance customers and vice versa. “We have been talking about it for two years and finally decided to go ahead this year,” he said.
Woolhouse confirmed there had been a small number of redundancies as a result of the merger, primarily in the back office, due to the relocation of the business to Maidenhead.
Wayne Carter, director for channel EMEA at McAfee, welcomed the news of the merger.
“I think it is a very positive move between two companies that compliment each other and combined will enhance their value proposition. This is not going to be the first time this year that this type of merger will take place,” he said.
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