ASG Group in talks for possible data centre sale

CEO Geoff Lewis says a sale will happen if it receives a “fair return”
ASG Group in talks for possible data centre sale

Perth-based IT services company ASG Group (ASX: ASZ) has confirmed that several parties have expressed interest in buying its data centre.

CEO Geoff Lewis announced plans to sell the Perth facility as part of a capital management program in an ASX announcement during October 2013.

The 550 square metre facility was opened in September 2011. Western Australian electricity utility company Western Power was announced as a foundation customer under a five-year $35 million contract.

At a media briefing in Sydney, Lewis said that while a “number of people” were interested in the data centre it would only be sold if the company received what he considered a “fair return”.

“We don’t see it as a strategic asset. However, it is producing good profits and has long term [customer] contracts," he said.

In August, the company reported a small revenue rise of $152.5 million for the financial year ended 30 June, up from $150.3 million in 2012.

However, ASG Group also announced a net loss of $29.9 million while earnings before interest, tax, depreciation and amortisation (EBITDA) fell to a loss of $19.9 million from $20.6 million the previous year.

Follow Hamish Barwick on Twitter: @HamishBarwick

Follow Computerworld Australia on Twitter: @ComputerworldAU, or take part in the Computerworld conversation on LinkedIn: Computerworld 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: ASG
References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: ASG Group, acquisition, Geoff Lewis, Data Centre
All whitepapers

Court slaps TPG with $400k fine over 000 failure

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