Wireless and switch vendor The Longreach Group will merge directly with Allied Technologies, providers of secure voice, video and data and Web-based communications to the Department of Defence and other Australian federal government departments.

Michael Addison, Allied Technologies chairman, said the merger is well timed given the "huge multibillion dollar increases in the Australian Defence budget just announced".

"Both organizations have long-standing relationships with the Department of Defence, intelligence communities and security departments with products and services which are noncompetitive and in fact complementary," Addison said.

"The combination will lay the foundation for building Australia's first, ASX-listed mid-tier supplier of integrated ICT products, services and support directed principally at the defense, security and intelligence sectors in Australia and internationally."

Addison said the future of the combined company would come mainly through a series of "quality" acquisitions.