logo
  Join        Login             Stock Quote

Computer Sciences (CSC) To Sell Australian IT Staffing Unit Paxus

 December 12, 2012 06:42 AM
 


(By Balaseshan) Computer Sciences Corp. (NYSE: CSC) said it has agreed with South Africa's employment services company, Adcorp, for the sale of its Australian IT staffing unit - Paxus.

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.

"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," said Mike Lawrie, president and CEO of CSC.

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.

[Related -Computer Sciences Corporation (NYSE:CSC): CSC May Miss FY2014 Revenue Target]

In fiscal 2012, revenue from Paxus was about $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.

"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 Lawrie.

[Related -5 Key Takeaways From International Business Machines Corp. (NYSE:IBM)Troubles]

CSC closed Tuesday's regular session up 0.43% at $39.28. The stock has been trading between $22.18 and $40.34 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageFord Motor Company (F): A long Road to Deutsche Bank’s $19 Target

Ford Motor Company (NYSE:F) is going the right way on a one way street where most everybody else is driving read on...

article imageCitigroup Inc (C) Q1 Earnings Preview: Too Many Parts Heading South

Citigroup Inc (NYSE:C) will issue its first quarter results via press release at approximately 8 a.m. (ET) read on...

article imageFacebook Inc (FB): You Might Not Like It Today, But You’ll Like It Tomorrow

Do you honestly want to invest in stocks right now? It sure looks like the bull market is at least on read on...

article imageJPMorgan Chase & Co. (JPM) Q1 Earnings Preview: Regulation Costs To Trim Guidance?

JPMorgan Chase & Co. (NYSE:JPM) will host a conference call to review first quarter 2014 financial results read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.