I wouldn't count on CNW retaining all of the L7 clients and...

I wouldn't count on CNW retaining all of the L7 clients and hence revenue.

A number of the companies were fed up with the way the business was run into the ground by Amcom/vocus and were waiting for contracts to expire before moving onto alternative partners.

There's also the issue that CNW does not have the resources nor capability to retain the Cisco gold partnership they bought with the acquisition of L7, meaning they won't get the same pricing level out of Cisco, and will struggle to maintain the partner support contracts.

The WA enterprise network market tends to only use partners that are at a gold level partnership.

There's a lot of bad sentiment from the clients with the swapping and changing and lack of support and constantly changing account managers and lack of clear communication regarding how the existing contracts will be honored.

Without a significant outlay for highly skilled personal (CCIE's X 4) + numerous partner certifications they will miss the deadline for recert in March (or possibly April) as to why they can't just hire the required resources or poach them from other companies, one of the restrictions on the CCIE certification is that it stays with an employees former company for 12 months after they leave them, and can't be associated to a new company.

All in all, don't expect the revenue from the newly acquired L7 BU to be at the same level as what it was prior to the CNW purchase.