International reseller Software Spectrum has sold its Australian and New Zealand professional services division to the local operator in a management buyout.
The buyout, which involves the company's 55 employees who will become shareholders in the new business, was spearheaded by former Software Spectrum Asia Pacific managing director David Colwin.
Software Spectrum decided to divest its $50 million worldwide professional services business because of its inability to turn a profit.
The company has closed eight of its 14 offices worldwide, while the six profitable locations will be bought out.
The local company, which will be rebranded as Naratis, will be made up of three profitable locations in Melbourne, Sydney and Wellington.
Software Spectrum is now looking for a managing director to replace Colvin in the company's software reselling business.
For Colvin, the management buyout is a case of déjà vu - he was one of the two people who sold the business to Software Spectrum in 1996. He plans to develop the business at high growth for three years and then take the company to a public offering.
"The consulting business is very much a people business, which is why it is difficult to translate onto a global scale," he said.