CSC has agreed to sell Paxus, its Australian IT staff unit, to South African employment services company Adcorp for US$73.5 million.
According to CSC, all 96 staff at Paxus in Australia will be offered jobs following the sale, which is expected to be completed next month. Paxus’s revenue in fiscal 2012 was about US$340 million with low single-digit operating margins.
CSC has been busy offloading divisions to “aligning the company’s resources with our strategy of leading the next generation of solutions and services,” according to president and CEO Mike Lawrie.
Earlier this month, the company sold its credit services division to Equifax for $1 billion and its Italian system integration division to Dedagroup for an undisclosed sum.
Lawrie said CSC didn’t anticipate any impact on its core services and clients in Australia following the sale to Adcorp and it expected to use that after-tax proceeds for “general corporate purposes”.
“Paxus provides contracted and permanent IT staff and has preferred supplier status with some of Australia’s blue chip companies and government departments,” said Adcorp CEO Richard Pike.
“CSC is currently Paxus’ largest client and will continue to procure IT resources from Paxus in terms of a five-year supply agreement between the two companies,” he said.
CSC acquired Continuum and its Melbourne-based Paxus business unit in 1996.