28th Feb 2013. Leading electronics and whitegoods discount retailer JB Hi-Fi (ASX:JBH) has announced the acquisition of a 51% majority shareholding in Network Neighborhood (“NN”), an education and corporate IT services business, with an option to acquire the remaining shares in 2014. Terms have not been disclosed.
Network Neighborhood was founded in Melbourne in 1999 and provides technical support, systems administration, project management, strategic planning, and warranty and spare parts to the education, corporate and government sectors. It employs over 170 staff and also maintains an office in Brisbane.
In FY2012 NN grew its revenues 52% to $26m, making it number 15 in the 2012 Computer Reseller News Fast 50.
Network Neighborhood deals with brands such as Lenovo, Apple, Belkin, HP and Microsoft, also has an online product portal for education clients to choose technologies and submit orders.
NN will become part of JB Hi-Fi’s commercial division, providing a range of products to corporate, government and education clients. It signals a concerted push to grow JB Hi-Fi Commercial in the business arena. JB Hi-Fi will keep the NN brand, and NN founder Hugh Marquis will remain with the business focussed on strategic development.
“Our commercial clients are demanding integrated end-to-end solutions,” commented JB Hi-Fi CFO Richard Murray. “JB plans to use the IP developed by the Network Neighborhood team to expand its service offer nationally. The combination of JB’s buying power and NN’s leading service offering will enable the group to provide our clients with complete networking and IT solutions.”