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Canberra IT firm Dataflex bought by VTS IT Group

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Thomas McIlroy

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Dataflex Founder and director Brian Evans.

Dataflex Founder and director Brian Evans. Photo: Andrew Sheargold

Canberra IT service provider and reseller Dataflex has been bought by VTS IT Group, just months after being placed into voluntary administration.

The Barton-based company called in administrators on April 24 after a potential takeover by Indian company Tech Mahindra fell through.

Chief executive Glenn Kennedy said the purchase was part of an explansion by VTS, which currently employs 50 people and provides managed ICT services.

The company recently merged with Queensland IT firm Downs MicroSystems.

Administrators made about 10 Dataflex staff redundant, admitting the company did not have enough assets to meet entitlements for staff.

Founded in 1987, Dataflex has a long history of contracts with the federal government and also has offices in Brisbane, Sydney, Melbourne.

It employed about 40 people before the administration and made $35 million in sales in the 2012-13 financial year.

Dataflex has received hundreds of Commonwealth tenders for technical support and IT equipment.

Records dating back to 2006 show contracts with government departments including Defence, Communications and Human Services as well as authorities including the National Archives, National Library.

The company has current contracts with Comsuper, the Department of Defence, the Australian Bureau of Statistics and the Australian Federal Police.

Dataflex reportedly lost more than $850,000 in a fraudulent 2008 tender deal with a Sydney customer.

Some staff who have left the company since the administration period will be offered ongoing employment.

Mr Kennedy said VTS IT was hopeful of continuing relationships with existing staff and clients. "There is great talent within Dataflex and we believe they are a solid team," he said.

"We look forward to working with them and are thrilled to be able to revive Dataflex, continue its work and expand its offering."

Founder and director Brian Evans said he would stay on with the company, which will continue to trade under its own name.

"They are very cognisant of the good branding that we have done and basically the good name that we've got in the federal government and would like to see it continue, as would I," he said. "We've all gone through very difficult soul-searching times.

"When you really feel you are doing your job well and your company is relevant ... you want to be at work. When something like this happens it really puts the frighteners on everyone."

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