Datacom has acquired the IP and selected assets from Western Australia-based education provider, XciteLogic.

Datacom will absorb all of Xcite's existing business and services, and provide a seamless transition for clients, suppliers and partners. It will also offer 25 key Xcite employees positions within the company and will support them to bring their specialist domain knowledge to the business. "This investment is part of Datacom's strategy to continue developing intellectual property assets and capability to provide differentiation for our clients in their activities and to further grow and position the company as a leader in the A/NZ region," Datacom CEO, Peter Wilson, said.

Last month, XciteLogic called in the administrators, appointing Dino Travaglini and Matthew Donnelly from Grant Thornton on May 9.

According to a report the company owed $3.8 million to unsecured creditors.

Travaglini said Xcite had under-capitalised and invested too much in software development and R&D.

In March last year, XciteLogic merged with its former rival, Key Options Technology, which itself faced cash flow issues. Datacom has offices in every state and the acquisition strengthens its strategic position in the Western Australian market with the addition of Xcite's integrated ICT solutions for government, corporate and education sectors.

Datacom Western Australia director, Basil Lenzo, said it would complement its existing business in the state, as well as taking on the education sector, value-added services and infrastructure solutions. It recently opened offices in the Pilbara to service the resources sector.

Beyond Western Australia, Datacom also intends to expand on Xcite's existing presence in Victoria and NSW.