Australian electronics retailer digiDirect Group has acquired online tech specialist Mwave, which entered administration last week.

Mwave, a company well-renowned among PC enthusiasts and the gaming community, will continue trading under its brand from its Lidcombe headquarters during a transition phase before operations shift to digiDirect’s base in South Strathfield.

The acquisition comes after Mwave’s former owner Esel Pty Ltd entered voluntary administration, with DVT Group appointed as administrator.

The deal sees Mwave join The digiDirect Group’s growing retail portfolio, which also includes consumer electronics retailer digiDirect, online bookstore Booktopia, and library supplier James Bennett.

Mwave, which employs around 100 staff, has been operating since 2006 and is best known for its large range of PC and gaming hardware, accessories, and custom PC builds. The company will eventually benefit from The digiDirect Group’s robotics and automation-equipped customer fulfilment centre in South Strathfield.

All Mwave staff have been offered continued employment, joining more than 400 people currently employed by the Group.

The extent of Mwave’s debt remains unknown, but sources believe the retailer became a victim of shifting consumer habits, with gamers opting to purchase PCs from larger retailers like JB Hi-Fi or direct from Dell’s Alienware or Lenovo’s Legion brands.

One of the biggest brands apart from their own machines ranged by the Western Sydney-based retailer was MSI. Mwave staff had previously been seen with Nvidia CEO Jensen Huang. The company had also built an extensive online business.

Mwave staff with the head of Nvidia Jenson Huang (left centre)

Antony Resnick and Henry Ho Leung Kwok of DVT Group in Parramatta, NSW, have been appointed to liquidate the company.

Mwave was controlled by Esel Pty Ltd, whose key director is Victor Wei Lee. The managing director is listed as Mr. Phil Montrone. Chief Technology Officer was Otto Xu, while Ari Klinger is listed as a board member and believed to be an investor.

Among the brands listed on the Mwave website are ASUS, MSI, Beyerdynamic, Intel, Microsoft, Geforce and Thermaltake. It is unclear whether the company operated with B2B distributor credit or on a cash-only basis, as their online sales model was predominantly build-to-order.