CSC continues divesting; plans sale of IT staffing unit
Latest transaction involves Australia Paxus unit
- By Mark Hoover
- Dec 12, 2012
Computer Sciences Corp. will sell its Australian information technology staffing unit, Paxus, to Adcorp, South Africa’s largest employment services company as CSC continues to act on its turnaround strategy.
Paxus is expected to sell for $73.5 million in cash.The transaction is expected to close by the end of January 2013.
This is CSC’s third sale in seven weeks, all of which advance the company’s transformation strategy to rebalance its portfolio of services. The company most recently sold its credit services unit to Equifax for $1 billion.
"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 CSC president and CEO, Mike Lawrie.
"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," he added.
According to the company, Paxus’ revenue in fiscal 2012 was $340 million with low single-digit operating margins. Its results will be recast as discontinued operations in future periods, the company said.
The company acquired Paxus in 1996, through its acquisition of Continuum, of which Paxus was a Melbourne-based business unit.
Mark Hoover is a senior staff writer with Washington Technology. You can contact him at firstname.lastname@example.org, or connect with him on Twitter at @mhooverWT.