In a $1.6 million deal, Spirit (ASX: ST1), an integrated IT&T Service Provider for SMBs, has announced the acquisition of Phoenix Austec Group Pty Ltd (Phoenix Austec).

Less than a month after Spirit’s acquisition of Arinda IT, the acquisition will see the company continue to expand and strengthen its entry into the Managed IT Service Provider (MSP) sector, while at the same time becoming a one-stop-shop for SMBs across Australia’s East Coast for all their IT, Internet and Communications needs.

Growing both organically and through acquisitions, which have recently included Arinda, Building Connect, LinkOne, Voxcom, My Telecom, Phone Names, and World Without Wires, this latest acquisition is Spirit’s 4th in as many months. 

Spirit’s approach to acquisitions has proven highly successful in the past due to its strong ability to integrate the companies that the team acquires.

The latest acquisition will enhance Spirit’s existing product and service offering to its current SME customer base by providing a range of IT services that can be powered by the telco’s super-fast, Sky-Speed Internet plans. Phoenix will add to the recently acquired Arinda IT managed services product range, which now represents circa 20% of Spirit’s overall revenue.

Spirit’s Managing Director, Geoff Neate said, “We approached Phoenix a few months ago and were impressed by its strong competency in providing managed IT and SAAS solutions to a customer base that is typical of Spirit’s target market. We now have a strong growing MSP IT product and customer portfolio and our team are already focused on integrating Phoenix and Arinda into a Spirit IT division.”

Established in 2007, Melbourne-based Phoenix provides small businesses with an outsourced managed IT solution including IT security, software as a service (SAAS) and IT consulting services. Phoenix has been particularly successful in the real estate sector but also boasts a broad range of SME customers.

“We have been growing Phoenix since 2007 and have been approached by other potential acquirers,” said Phoenix Managing Director, Amelia Buchanan. “Once we understood the direction Spirit is headed and the growth opportunity that this delivers the Phoenix team, we became eager to be part of the journey. We were particularly impressed with the integration methodology that Spirit has created for MSP’s inside its operations. We have met a lot of the Spirit team and we are already working on realising the potential that the newly formed Spirit IT will deliver.”

More from The Business Conversation:

Award-winning Australian technology company Fusion Factory boosted by $4m equity raise

Carbonxt raises $3m to meet high demand for its unique environmental product

Lithium Australia partners with Envirostream on battery recycling