UXC has acquired SAP services company, Oxygen, as part of a $20 million investment plan to boost its technology services in the Asia-Pacific.
Oxygen is an emerging business division of New Zealand-based forest products company, Carter Holt Harvey. The financial terms of the deal have not been disclosed. However, as part of the sale agreement, UXC will provide SAP supply services to Carter Holt Harvey via the Oxygen subsidiary until the end of 2010.
According to a press statement, Oxygen will become a business unit within UXC's Business Solutions Group. Other units encompassed within this division include Red Rock Consulting, Dytech, XSI Data Solutions and QSP.
Oxygen currently has 140 staff and a broad range of customers, including Cadbury Schweppes, BHP Billiton and Orica and boasts of annual revenue of about $25 million. Its current CEO, Mike Smith, will report directly to CEO for the Group, Cris Nicolli. As part of the conditions of the sale, at least 80 per cent of the company's total staff will also be retained by UXC.
"The acquisition of Oxygen gives UXC an important leadership position in the $700 million, high-growth SAP market in Australia and New Zealand," Nicolli said in a statement. "The acquisition complements UXC's existing strengths in the Microsoft Business Solutions and Oracle markets."
The deal is expected to be settled on January 31, 2006.