Avnet picks up Cellnet IT operations
- 24 June, 2009 14:02
- Comments 3
Embattled distributor, Cellnet (ASX: CLT), has offloaded its Australian IT operations to rival, Avnet.
The deal is expected to release $2 million in working capital over the next two months and have little impact on earnings, Cellnet claimed in a statement to the ASX.
Cellnet CEO, Stuart Smith, told ARN a decision on how to use the funds raised from the sale of the IT operations had yet to be made.
“We are looking at all options, obviously in conjunction with our major shareholder CVC and outside parties,” Smith said.
It is understood, nine out of 15 staff – excluding warehouse staff – have been offered positions at Avnet.
“The staff moving over, in the current economic environment, we saw that as a positive,” he said. “The customer base in terms of continuity is all hopefully going to be fairly seamless.”
Earlier this month the fate of the IT business hit the spotlight following revelations Cellnet was looking to sell the division after the distributor’s decision to offload its New Zealand IT operations to Datastor.
Last year, rival distributor, Dicker Data, revealed it had been in discussion with Cellnet’s majority owner, CVC Ltd, to acquire parts of Cellnet’s business.
Cellnet is expecting to post up to $12 million in losses in the full year to June 30, according to recent guidance documents.
Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.
- Bookmark this page
- Share this article
- Got more on this story? Email ARN
- Follow ARN on twitter
- Market Potential-Strategy Guide to the Active Archive Market
- Aberdeen Group: Building Business Resilience Through Active Archive
- In Search of the Long-Term Archiving Solution —Tape Delivers Significant TCO Advantage over Disk
- Spectra Logic and Australian National University Success Story - March 2012
- In Search of the Long-Term Archiving Solution —Tape Continues to Be a Major Player
-
World’s eyes on Aussie NBN: Conroy
-
iPhone 5 rumour rollup for the week ending May 27
-
PRODUCTS: Aranez announces K-Leather iPad 2 case
-
Italian mathematician prepares to challenge Google
-
Facebook could buy Nokia to build 'FacePhone', expert claims
Get exclusive access to ARN's news, research and invitation only events. 
Comments
Nadia Cameron
The rest of IT?
According to Cellnet, it will continue to distribute its remaining IT brands, including printers, for the short-term.
But what long-term future do these products have at Cellnet? Given the disentegration of its IT distribution business thus far, will those remaining vendors continue to support this business? Or will we see a mass exodus?
Anonymous
Nooooooooooooo
Nadia, who will you bash now????? Time to find a new whipping boy and fast!
Anonymous
Cellnet would lose their head if it wasn't screwed on properly!
Post new comment