Eircom restructures
business division

31 Mar 2005

Eircom is planning to merge the corporate and government divisions of Eircom Business Systems with its networking subsidiary Lan Communications, creating a division capable of generating revenues of €50m a year, siliconrepublic.com has learned.

A source confirmed that the merger will not result in any job losses.

In a move described by the company as a reorganisation aimed at driving better business efficiencies the merger creates the largest voice, data and security services company in the country, with a customer base of more than 1,250 active corporate, government and business sector clients.

The new division will be based in Dublin, encompassing a nationwide team of business and technical professionals who will work in partnership with major equipment and software vendors.

Eircom Retail managing director Cathal Magee described the decision to merge both organisations as being driven by changing market dynamics.

Magee commented: “This merger is just one element of Eircom’s business strategy to deliver seamless communications solutions to its customer base.

“This is great news for our customers, who will now receive greater value from one source. By combining our resources, customers will be able to take advantage of our unrivalled expertise in voice and data solutions throughout the country,” Magee said.

Eircom acquired Lan Communications in 1999 for €10.7m and the company has survived successive restructures and changes at the company to become one of its key operations, employing around 130 people.

“The merger directly reflects changing purchasing patterns for telecommunications equipment and services,” commented Alan Brown, managing director of Lan Communications.

Brown cited recent market research conducted by IT analysis firm Canalys that reports 57pc of respondents to a survey think it will be common for customers to buy their voice and data hardware from a single vendor in three years time.

By John Kennedy