It has been a turbulent week for Powerlan. Firstly it was forced to place the remains of the company left over from the sale of Powerlan Qld into voluntary administration. Then reports surfaced that its premises had been raided by the Australian Securities and Investment Commission (ASIC) in relation to an investigation into unusually heavy share trading. To top it off, disaster recovery and outsourcing company Classic Blue announced it had snapped up Powerlan's mainframe hosting services for an undisclosed sum.
Powerlan originally acquired the mainframe business through its acquisition of Commercial Software Services Limited (CSSL). It developed the unit's focus to provide mainframe hosting and facilities management services. Classic Blue will now service the division's outsourcing service contracts.
"As well as increasing the number of Classic Blue's outsourcing customers, Powerlan's business unit is complementary to Classic Blue's current set of service offerings and will be a pure bolt on' to the existing structure," said Classic Blue managing director Adrian Bogatez.
He declined to comment on the specific details of the contracts, due to confidentiality agreements.
Classic Blue began negotiations with Powerlan to acquire the division in May 2002. The deal was completed and the associated infrastructure transferred to the Classic Blue facility this month.
Powerlan also announced it has wound up what was left of the sale of Powerlan Qld and has placed the company in voluntary administration. Powerlan Qld was sold two weeks ago to NetOptions and the administration in no way affects that business.
"We continue to conduct our business normally," NetOptions managing director Richard McAlary told ARN.
A spokesperson for Powerlan said the company was purely a shell company and the decision to put it into administration would free up management to focus on Powerlan's core business. No staff were involved, he said.
It is still unclear, however, whether the administration takes in Queensland Software Services, a joint venture formed last year between Powerlan and integrator Data#3.
Meanwhile, the Financial Review has reported that the Federal Police and ASIC executed a search order on Powerlan's premises in relation to an inquiry on irregular share trading.