KAZ Computer Services Ltd has revised its profit forecast after announcing plans yesterday to acquire Australian Administration Services Pty Ltd (AAS) from AMP Life Ltd for A$75 million.
As part of the acquisition of AAS, which is Australia's largest administrator of superannuation funds, KAZ will expand its outsourcing contracts with AMP winning a $70 million agreement over six years.
As a result KAZ expects company profits to increase from $9.2 million in 2000 to $24 million in 2001 reaching $39 million in 2002.
AAS provides outsourced solutions for 36 blue chip superannuation funds with over four million individual members.
Upon completion of the transaction AMP will become a 6.4 per cent shareholder in KAZ.
The company's managing director Peter Kazacos said the three new outsourcing contracts with AMP makes KAZ the largest outsourcer of mid-range systems in Australia.
"KAZ is in a very strong position to fund future growth and plan to expand the customer base of AAS beyond Australia; only recently we won a long term administration contract with the Thai Government," he said.