Classic Blue buys Powerlan division

Classic Blue buys Powerlan division

Powerlan's divestment of its non-core assets continues, with disaster recovery and outsourcing company Classic Blue snapping up its mainframe hosting services for an undisclosed sum.

Powerlan originally acquired the business through its acquisition of IBM systems remarketer Commercial Software Services Limited (CSSL). At the time, the union was described more in terms of a marriage than an acquisition. Powerlan 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 this year. The deal was completed and the associated infrastructure transferred to the Classic Blue facility this month.

Powerlan managing director Theo Baker told ARN 90 per cent of its income would now come from abroad, from software products in areas such as telecommunications and funds management. "That is where we are going to be focusing - it's a niche business, not a commodity-based business."

Ironically, much of the intellectual property behind the software came from the acquisition of companies it is now selling off. Its Portfolio Manager software, for example, is the result of the company's acquisition of CSSL in late 1999.

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