Buying Origen is an interesting move on Datacom’s part. On the surface it’s a simply a consolidation play. The acquisition shores up the company’s business in the local government sector – a substantial market for the company.
At the same time, Datacom gets to leverage its Trans-Tasman presence. The company’s brand is well-known and trusted – that can open doors for Origen where a 15-person Tauranga-based outfit might struggle. Australians are used to dealing with larger technology providers and may wonder if a small company can provided the depth of support. That’s probably not fair – but then life isn’t either.
But the part that caught my eye is that Datacom plans to offer Origen along with cloud services and business process management. That’s a business where its relative scale can score. Presumably there are a lot more specialist vertical market software developers out there who could do with a similar cloud and services leg-up.
I suspect we will see more acquisitions of a similar nature.