CSC Agrees to Sell Australian IT Staffing Unit
News Release -- December 12, 2012
FALLS CHURCH, Va., Dec. 12 – CSC (NYSE: CSC) has reached a definitive agreement with Adcorp, South Africa’s largest employment services company, for the sale of Paxus, its Australian IT staffing unit. This agreement, CSC’s third divestiture in seven weeks, advances CSC’s transformation strategy to rebalance its portfolio of services. The total value of this all-cash transaction is expected to be $73.5 million.
Adcorp’s decades-long history in the staffing industry will ease the transition for Paxus’s clients and employees. After the closing, CSC will continue a business relationship with Paxus to meet its IT staffing needs in Australia.
"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, 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."
In fiscal 2012, revenue from Paxus was approximately $340 million with low single-digit operating margins. Paxus’s results will be recast as discontinued operations in future periods. Paxus’s results had been previously reported within CSC’s Business Solutions and Services segment.
The companies expect to close the transaction by the end of January 2013.
CSC acquired Continuum and its Melbourne-based Paxus business unit in 1996.
CSC is a global leader in providing technology-enabled business solutions and services. Headquartered in Falls Church, Va., CSC has approximately 95,000 employees and reported revenue of $15.7 billion for the 12 months ended September 28, 2012. For more information, visit the company's website at www.csc.com.