CSC walks away from NetOptions sale

CSC walks away from NetOptions sale

NetOptions has suffered a setback in its quest to become the number two services company in Australia, with the news that its $150 million acquisition of CSC Australia’s reseller business has been scuttled.

The deal, announced by the two companies in late November, foundered after privately-held NetOptions was unable to satisfy all of the conditions of the sale, according to a statement released by CSC today.

A spokesperson for CSC said the company had decided to withdraw from the sale negotiations yesterday.

“At this stage CSC has decided to retain the Product Group's IT reseller activities as part of CSC Australia,” she said.

When the sale to NetOptions was announced in November, CSC CEO, Mike Shove, said the decision to divest the reseller business was made as it wasn’t a core business.

“ Decreasing margins and increased commoditisation and competition make it harder to compete in this space and meet CSC's corporate business requirements,” he said. “It makes economic sense to find an appropriate partner for the product business.”

For more on this story see next week’s ARN.

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