IT consulting firm PS&C Limited has divested the Allcom Networks business to managed services provider Crosspoint Telecommunications for $3.2 million.
The payment will be broken down in three parts. First a $1 million completion payment is expected, followed by post-completion payments of $1.8 million on 21 May 2019 and $400,000 on 21 November 2019.
The decision to divest the business is part of publicly-listed PS&C restructuring activities across the 2017 and 2018 financial years. According to PS&C, the decision was also based on the view that the business was not cohesively aligned to the company’s core strategy.
“PS&C is fundamentally a people business delivering specialised services to our clients," said Glenn Fielding, managing director and CEO at PS&C." The Allcom Networks business did not align with where we are focusing the company’s efforts and did not provide PS&C with any competitive advantage moving forward.
"Our decision to divest was important to protect the integrity of the significant restructuring efforts across the past 24 months.”
According to Fielding, Allcom is a strategic investment for Crosspoint, who offers a "comprehensive" end-to-end managed IT solutions in voice, video, managed IT services and professional services.
Crosspoint partners with several networking and technology vendors including Cisco, Dell, HPE, Polycom and Telstra.
“I would like to thank the staff at Allcom and wish them all the very best in the journey that lies ahead with Crosspoint,” Fielding added.
This brings PS&C brands to 11 Glass + Co, Bexton IT Services, Coroma, Seisma, Systems + People, North Consulting, Sacon, Pure Hacking, HackLabs, Securus Global and Certitude.
Seisma was one of the company's latest acquisitions, which took place in April. The Melbourne-based technology consultancy was acquired in a mix of PS&C scrip and cash on an acquisition multiple of between 4.5 and 5.5 times FY18 EBITDA, worth between $11.2 and $13.7 million.
PS&C, which has a strong focus on the government sector, is made up of three business units - People (technical and professional services), Security and Communications.