Computer Sciences Corporation (CSC) Australia is understood to be on the verge of announcing the sale of its reseller arm, CSC Product, to acquisitive reseller NetOptions.
NetOptions scooped up CSC’s reseller arm in a quickly struck deal which was understood to have concluded last week.
The terms of the deal have yet to be disclosed, but it would represent a major acquisition for NetOptions.
CSC’s reseller arm contributed $150 million to CSC Australia’s annual revenue last year.
NetOptions managing director, Richard McAlary, was - this morning - playing coy about the CSC acquisition.
“We’re not denying your story,” he said, “We’re obviously doing something.”
The responsibility for any announcement would lie with CSC, McAlary said.
“I believe CSC has sent out letters to suppliers and people like that,” he said.
The deal was understood to have been brokered by CSC’s Richard Marlowe.
The sale comes after the reseller division's profitability had begun to lag behind that of the rest of the company.
In August, CSC Australia chief executive, Mike Shove, told ARN that falling revenues of 10 – 12 per cent in its PC reseller business, along with its recruitment arm, Paxus, had hindered the companies results.
Overall, CSC Australia reported profits of $36 million to June 30, representing profit levels of 5-6 per cent.
For the full story, see next week’s ARN.