CSC has agreed to sell Paxus, its Australian IT staffing unit, to Adcorp.
Adcorp, South Africa's largest employment services company, will purchase Paxus, CSC's Australian IT staffing unit for $73.5 million. The all-cash deal between Adcorp and global consultancy and business solutions firm CSC, is intended to "rebalance" CSC's portfolio of services.
CSC will maintain a business relationship with Paxus, who provides IT staffing services in Australia, after the deal is completed.
"This portfolio-shaping transaction is the latest step in CSC's transformation. We are aligning the company's resources with our strategy of leading the next generation of solutions and services," said Mike Lawrie, CSC president and CEO. "We do not anticipate any impact on CSC's core services and clients in Australia, and we expect to use after-tax proceeds for general corporate purposes."
CSC acquired Melbourne-based Paxus, a business unit of Continuum, in 1996. The firm has approximately 95,000 employees and reported $15.7 billion in revenue for the fiscal year ending September 28, 2012. In FY2012, Paxus's reported revenue was approximately $340 million.
The companies expect to finalize the deal by the end of January 2013.
Recently, CSC has experienced contract issues in the United Kingdom, taking a £1 billion hit on the value of contracts issued by the UK Department of Health to implement a patient electronic records system, which is an ingoing project of poor performance. However, in Australia, not everything is so bleak. The firm recently recieved an AU$2.76 million grant from the Illawarra Region Innovation and Investment Fund to create two centers that will focus on cloud technology and cybersecurity.