Adcorp to buy CSC’s Australian IT staffing business

All 96 staff at Paxus will be offered jobs, CSC said
CSC's head office in the United States

CSC's head office in the United States

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.

Follow CIO Australia on Twitter and Like us on Facebook… Twitter: @CIO_Australia, Facebook: CIO Australia, or take part in the CIO conversation on LinkedIn: CIO Australia

Join the Computerworld Australia group on Linkedin. The group is open to IT Directors, IT Managers, Infrastructure Managers, Network Managers, Security Managers, Communications Managers.

More about: Adcorp, Continuum, CSC, Equifax, Facebook
References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: csc, Paxus, Adcorp
Whitepapers
All whitepapers

Will smart watches and glasses drive mobile payments?

READ THIS ARTICLE
DO NOT SHOW THIS BOX AGAIN [ x ]
Sign up now to get free exclusive access to reports, research and invitation only events.

Computerworld newsletter

Join the most dedicated community for IT managers, leaders and professionals in Australia