Troubled Powerlan has continued to trim its operations by announcing the sale of two software divisions. Powerlan’s International Trade and Transportation Software Division (ITTSD) has been sold to Transaxiom Asia-Pacific for $1.47 million. The sale proceeds, along with the outstanding amount due from the sale of IT&T Careers to the CHR Group for $1 million in September, will be used to reduce debts.
A statement released to the ASX said the decision to sell ITTSD was “based upon the need for significant investment” adding that the sale would allow Powerlan to divert funds into other software divisions to give better shareholder value.
“Transaxiom has a complete range of international trade and transport solutions and is well placed to merge ITTSD solutions into its own extensive portfolio,” managing director of Powerlan, Theo Baker, said.
The Axapta ERP Consulting and Implementation Divisions in Hong Kong and Singapore have been sold to Avanade Asia for $101,000. A Powerlan company statement said the third-party accounting software divisions had “under-performed in the past two years” and suggested the sale was in line with Powerlan’s “strategic direction to concentrate on its software products divisions and specialised services that surround such services”.
Powerlan plans further divesting and closure of non-core businesses in Asia.