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Link Group signs Fujitsu for AU$80m managed services contract

Ahead of its IPO, Australia's Link Group has re-signed with Fujitsu in a five-year deal that will see the Japanese conglomerate provide managed infrastructure services to the financial services firm.

Fujitsu has signed a AU$80 million managed infrastructure services contract with Australian financial services firm, cum IT solutions provider, Link Group, extending its existing 10-year "shared history".

As part of the five-year deal, Link Group will migrate its recently acquired Superpartners client funds from the legacy Superpartners system to Link Group's Aspire system, tabled for completion by December 2016.

Under the contract, Link Group's existing Western Australian business and its Superpartners stream will be migrated to Fujitsu's delivery model, which under a previous agreement is currently in place for Link Group's business on the east coast of Australia. These services will be delivered via a combined onsite, onshore, and offshore model.

Link Group said the deal includes service desk, service delivery management, end-user services, network management, infrastructure support, datacentre, and project services.

On Wednesday, Link Group lodged a prospectus ahead of plans to file for initial public offering (IPO), and are expecting to raise approximately AU$946.5 million, selling 42.3 percent of the company or 162.5 million shares.

The IPO values the company at AU$2 billion to AU$2.3 billion, which according to the Commonwealth Bank of Australia, will make it the largest float so far this year.

According to the prospectus, the share offer closes on October 20, 2015.

Last month, Link Group entered into a strategic partnership with ME Bank that will see the pair deliver integrated innovations for superannuation funds.

"The partnership will leverage Link Group's technology platform -- a part of the company's Information, Digital, and Data Services division -- to improve the customer journey for fund members by offering greater integration between their banking and superannuation," Link Group said of the deal.

For the quarter ending June 2015, Fujitsu posted a 27 billion yen quarterly operating loss, compared to the same time last year, when the tech giant posted a 7.2 billion yen profit.

The company's services division saw a 5 percent increase in revenue thanks to increased government and finance spending, but profit fell 3 percent to 10 billion yen.

"In the services sub-segment, revenue from the Americas was weak, but revenue rose in Australia and Asia," the company said at the time.

"Despite the positive impact of higher sales, operating profit declined because of higher expenses to expand sales in the internet service provider business, among other factors."