IT services provider, CSC has sold its Australian IT staffing unit, Paxus to South African employment services company, Adcorp for about $US73.5 million in an all-cash transaction.
This is CSC’s third divestiture in seven weeks and is part of the company’s strategy to ‘rebalance’ its services portfolio.
"We are aligning the company's resources with our strategy of leading the next generation of solutions and services," CSC president and CEO, Mike Lawrie, said in a statement. "We do not anticipate any impact on CSC’s core services and clients in Australia, and we expect to use after-tax proceeds for general corporate purposes."
Once the transaction is closed at the end of January, CSC will continue a business relationship with Paxus to meet its IT staffing needs in Australia.
In fiscal 2012, revenue from Paxus was approximately $340 million with low single-digit operating margins. Results had been previously reported within CSC’s Business Solutions and Services segment and will be recast as discontinued operations in future periods.
CSC acquired Continuum and its Melbourne-based Paxus business unit in 1996.
Earlier this month, CSC sold its credit services unit to Equifax for $US1 billion.
In October, the company sold its consulting and systems integration services part of its Italian business to Italian IT services company, Dedagroup.