MCR Allcom PNG merger to create regional powerhouse

ALLCOM MCR PNG will be one of the largest ICT providers in the region, according to a statement. The merger involved an asset transfer by MCR, which has taken part ownership of the new entity.

Since MCR is a partner of another Australian company Australia Cisco, there has already been excitement generated on the prospects of the merger, according a report from Connection the Australian Channel blog on Monday.

The blog reported that Australia Cisco partner MCR has merged its office in PNG with key rival Allcom PNG as economic growth for Australia’s neighbour looks set to continue.

The merger involved an asset transfer by MCR, which has taken part ownership of the new entity according the blog. The move brings together an impressive partner roster between the two companies, which are both Cisco partners, and until the merger were major competitors in PNG.

MCR is an Oracle Gold Partner and Cisco Silver partner as well as a Microsoft, IBM, EMC, Symantec and VMware partner, amongst others. Meanwhile, Allcom PNG is a Cisco Premier Partner, Microsoft Gold Partner and Citrix Silver Partner.

Allcom MCR PNG managing director Luke Byer described the deal as "very significant", saying it was the first time the company has been involved in M&A activity. "There was not a lot of conflicting overlap. It was complimentary," he told CRN. Where it did overlap it was still an advantage."

For MCR, the merger will add key Citrix expertise. The merged entity has approximately 35 staff. Byer said Allcom PNG has experienced strong year-on-year growth since it was established in 2008, with the mining industry driving growth in Papua New Guinea. He said the country’s Exxon LNG project has been a "massive boost" to the economy.

"It was a very marked change to Port Moresby. Everything gets bigger - airports get upgraded, there’s more hotels, the banks get bigger; all that pushes along our business," he said. The private sector workforce in PNG has almost doubled in size in the past decade according to the Asian Development Bank, which reports an "emerging middle class".

MCR has been operating in PNG for six years and also has offices in North Sydney and Canberra. MCR group managing director Sam Vakili described the Allcom PNG team as "really good operators, very technically capable." Allcom PNG shares key shareholders with the operators of Allcom Networks in Australia, which became part of PS&C last year, but the PNG operation is a separate entity and not part of the PS&C group.

Byer is the managing director of the merged entity and Vakili will remain involved in the PNG operations as group managing director.