Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Adcorp to buy CSC’s Australian IT staffing business

All 96 staff at Paxus will be offered jobs, CSC said
CSC's head office in the United States

CSC's head office in the United States

CSC has agreed to sell Paxus, its Australian IT staff unit, to South African employment services company Adcorp for US$73.5 million.

According to CSC, all 96 staff at Paxus in Australia will be offered jobs following the sale, which is expected to be completed next month. Paxus’s revenue in fiscal 2012 was about US$340 million with low single-digit operating margins.

CSC has been busy offloading divisions to “aligning the company’s resources with our strategy of leading the next generation of solutions and services,” according to president and CEO Mike Lawrie.

Earlier this month, the company sold its credit services division to Equifax for $1 billion and its Italian system integration division to Dedagroup for an undisclosed sum.

Lawrie said CSC didn’t anticipate any impact on its core services and clients in Australia following the sale to Adcorp and it expected to use that after-tax proceeds for “general corporate purposes”.

“Paxus provides contracted and permanent IT staff and has preferred supplier status with some of Australia’s blue chip companies and government departments,” said Adcorp CEO Richard Pike.

“CSC is currently Paxus’ largest client and will continue to procure IT resources from Paxus in terms of a five-year supply agreement between the two companies,” he said.

CSC acquired Continuum and its Melbourne-based Paxus business unit in 1996.

Follow CIO Australia on Twitter and Like us on Facebook… Twitter: @CIO_Australia, Facebook: CIO Australia, or take part in the CIO conversation on LinkedIn: CIO Australia

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Adcorp, Continuum, CSC, Equifax, Facebook
References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: csc, Paxus, Adcorp
Latest Blog Posts
Whitepapers
  • Avoiding Common Pitfalls of Evaluating and Implementing DCIM Solutions
    While many who invest in Data Centre Infrastructure Management (DCIM) software benefit greatly, some do not. Research has revealed a number of pitfalls that end users should avoid when evaluating and implementing DCIM solutions. Choosing an inappropriate solution, relying on inadequate processes, and a lack of commitment / ownership / knowledge can each undermine a chosen toolset’s ability to deliver the value it was designed to provide. This paper describes these common pitfalls and provides practical guidance on how to avoid them.
    Learn more »
  • Transform IT, Transform the Enterprise
    Existing IT operational models and an ageing infrastructure are CIOs back from their full potential. This paper reveals the three IT imperatives for a CIO-led transformation, and details how CIOs are adopting strategies to change IT and assert their organisations as business leaders and innovators.
    Learn more »
  • CISO 2013 Security Insights: A new standard for security leaders
    Insights from the 2013 IBM Chief Information Security Officer Assessment which uncovered a set of leading business, technology and measurement practices that help to address the questions CISO's and security leaders have in managing diverse business concerns, creating mobile security policies and in fully integrating business, risk and security metrics.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Salary Calculator

Supplied by

View the full Peoplebank ICT Salary & Employment Index

Recent comments

Computerworld
ARN
Techworld
CMO