Harris Technology will sell its wholesale and distribution business Anyware Corporation to Leader Computers in a transaction expected to be completed by 3 October.
Anyware Corporation is a subsidiary which operates its business to business IT accessories wholesale and distribution in Australia, with warehouses in Melbourne, Sydney, Brisbane and Perth.
Publicly-listed Harris Technology told shareholders on 31 August that the board had "carefully considered" the strategy and future direction of the company and decided that it was in the best interest of the shareholders that the organisations divests the Anyware arm of the group.
The transaction will allow Harris Technology to focus on its consumer business strengthening the company’s balance sheet.
As a result, Leader Computers will acquire the majority of the inventory held by Anyware, estimated at approximately $4.5 million, account receivables, accounts payables and a goodwill amount of $250,000 subject to certain conditions.
Leader Computers will also resume the warehouse lease agreement in New South Wales.
"The Anyware business has been the significant revenue base for the Group, the operation has also contributed the majority of the losses recorded in the last 12 months notwithstanding considerable effort to implement costs reduction," said Andrew Plympton, chairman of Harris Technology.
"Gross Margins have been under enormous pressure together with changes in customer demand driven by move away from traditional PC hardware to hand-held devices and tablet.
"The purchaser has substantive interests and revenue in this sector with traditional bricks and mortar distribution. The company will use its energy and expertise on core activities in the B2C and M2C sectors.”
In an interview with Openbriefing.com in early 2017, CEO Garrison Huang had made clear that the focus for 2018 would be on Harris Technology's e-commerce platform through a manufacturer-to-consumer (M2C) business model.
Harris Technology closed the 2018 financial year with a net loss from continuing operations of $2.06 million and revenue of $45.9 million, a 10 per cent decrease from the previous corresponding period.