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Kazacos: Hostech to cut staff and consolidate offices

Kazacos: Hostech to cut staff and consolidate offices

Kazacos doesn't rule out staff redundancies saying there's no room for six CEOs, and will consolidate offices in Perth, Melbourne and Sydney to one in each state

Hostech has confirmed a management restructure and staff cuts are expected following its acquisitions of Anittel, Axxis Technology, Aspirence and Accord Technologies.

In February, Anittel announced a merger with other four other entities to form a reseller powerhouse under the ASX-listed Hostech brand. The first deal between Hostech and Anittel was completed on April 20.

Executive chairman, Peter Kazacos, told ARN Aspirence will be finalised this week and he expected Axxis to completed next week. All acquisitions should be finalised by the end of April.

“We started the integration process before we completed it, but there are obviously things that you can’t do till you actually have the company in hand,” Kazacos said.

Steps towards integrating all staff into the business are beginning to take shape. He did not rule out staff redundancies once the acquisitions of the four companies was finalised. To date, Anittel founder, Mark Stead, and business development director, Conrad Hilder, have departed.

“We will revisit all senior positions in the organisation. There’s no room for six CEOs,” Kazacos said. “There are going to be some losses with the back-office staff, and some of the senior positions will see some attrition.

“The good thing is that we need all the people delivering services and the performing sales staff. As we grow, we’ll be looking at creating positions where we see some new opportunities.”

Some shareholders in WA are retiring and that will created some new positions in the company, he said.

There are 15 offices under the combined entities, but Hostech will consolidate premises where there are double ups, Kazacos said. For example, it has two offices in Perth, Melbourne and Sydney, but will only need one in each city.

Both Sydney offices will be combined and moved to a new presence in North Sydney.

The combined entity will be looking at ways of packaging offerings from across the acquired companies. For example, managed services from Accord could be integrated with telco services from Anittel and Hostech, Kazacos said.

“It’s cross matching the things they don’t have and in the same line we’ll be formulating some new product offerings,” he said. “Then we will be looking at providing all these new and exciting offerings to our customers.”

Hostech recently revealed detailed purchase arrangements of each acquisition and goals to reach up to $9 million in pre-tax profit for the 2011 financial year.

“It’s good to see that customers have responded really well,” Kazacos added.

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Tags Mergers and acquisitionsHostechAnittelAxxis TechnologyAccord TechnologiesAspirencePeter Kazacos

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