Melbourne IT has sold its For The Record (FTR) business unit for $6.3 million to Record Holdings.
The transaction will be completed on August 31, and the transaction has resulted in a loss on sale of about $1.2 million, which will be accounted for in Melbourne IT’s first half results.
“For many years now, FTR has been a global leader in its field, but with the majority of Melbourne IT’s focus on internet services, the FTR business is not a strategic fit with our company’s long term plans,” Melbourne IT CEO and managing director, Theo Hnarakis, said.
Record Holdings CEO and managing director, Peter Wyatt, said customers across both organisations will benefit from the acquisition.
“Our company is 100 per cent focused on the court recording market and we’re committed to developing FTR’s leading technology even further,” Wyatt said. “The combination of our companies opens the door to greater innovation in the digital recording market and builds upon the partnership between FTR and our Court Recording Solutions business announced last year.”
In November, Melbourne IT flagged intentions to sell some of its business units after reviewing its corporate structure and portfolio of businesses.