QRSciences purchases Baxall Distribution Australia
QRSciences (ASX: QRS) (QRSNY:PK) is pleased to announce that it
has completed the purchase of the business and key assets of Baxall Australia
Pty Limited (Baxall).
Baxall is a direct seller and distributor of surveillance and monitoring equipment,
including closed circuit television (CCTV) security cameras, digital video recorders
(DVR) and related components. Since its establishment in March 2005, the business has
grown rapidly with revenue in FY06 of $5M and an expectation for year-on-year growth
over the next two years of 100% per annum to approximately $10M in FY07 and $ 20M in
FY08. The commitment from QRSciences will allow Baxall to fully participate in the
rapid growth being experienced by the Australian security products market, which is
now estimated to exceed $150M per annum. Baxall management has indicated that its
goal is to capture 20% of the Australian market over the next three years. This will
be accomplished through an expanded product range, organic growth on the east coast
and the establishment of sales offices in Western Australia, South Australia and New
Zealand.
"Baxall is a highly complementary acquisition for us," said Kevin Russeth, Chief
Executive Officer of QRSciences. "It delivers a significantly enhanced presence in
the broader security market and, through its well-established sales and distribution
capability in Australia and across the Southeast Asian region, the means to accelerate
the uptake of QRSciences' own proprietary technologies. Further synergies attach to
QRSciences' interest in Spectrum San Diego, Inc. (Spectrum) the designer of electronic
imaging systems whose SentryScope™ camera is already distributed by Baxall in Australia.
"The SentryScope™ uses advanced line scan technology to achieve ultra high resolution
surveillance video capturing 21 million pixels per image and covering a 90 degree field
of view. The large volume of data allows zooming into sub-regions with extreme accuracy
and clarity and is a particularly good solution for train stations, ports, stadiums,
rail yards, nuclear and electrical power plants, border surveillance, parking lots and
large commercial warehouse facilities and is one of several products that Spectrum have
developed.
Baxall currently employs over 20 people and has warehouse and office facilities in
Melbourne, Sydney and Brisbane. The business was established and managed by Rick Stokes,
a 17-year veteran of the Australian security industry. Mr. Stokes is a pioneer in the
CCTV industry in Australia and the founder of the first low cost CCTV distributor, Vicam
CCTV Systems which was subsequently sold to Hills Industries. After Vicam's acquisition
he became the General Manager of Hills' CCTV business unit which he helped grow to capture
40% market share in Australia and New Zealand. Mr. Stokes has extensive contacts at senior
management levels in the video security industry worldwide and has been able to recruit
key members of his former team to the Baxall business.
For further information contact:
Baxall Distribution Australia
web: www.baxall.com.au
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