Sydney reseller acquires NSW govt's IT services provider

The NSW Government has sold state-owned services provider ac3 to systems integrator Klikon Solutions for an undisclosed sum.

The state government has been shopping around for a buyer for the Australian Centre for Advanced Computing and Communication (ac3) since May 2013, when it revealed plans to offload the agency.

The sale also forms part of the NSW Government’s strategy to move away from being a provider of IT services to a purchaser, as outlined in its ICT Strategy for 2012.

Both parties declined to comment on the value of the deal due to “mutual confidentiality requirements”. 

At present, ac3 currently provides support, systems and network management, infrastructure and platform services, application services, and mobility management to several NSW government agencies.

Around 80 percent of ac3’s $15 million in revenue last year was provided by NSW Government clients.

The organisation is based in Sydney’s Australian Technology Park and had 50 staff members as of March 2013. It is as yer unclear whether all staff will be retained in the move. Both Klikon and the NSW Government have been contacted for comment.

NSW Finance Minister Andrew Constance said the body would continue to provide “essential” IT services to state agencies.

The businesses will operate autonomously for three months, and all existing ac3 contracts will be honoured.

The NSW Government is currently attempting to migrate NSW Government IT services into two Metronode-built centres at Silverwater and Unanderra with the help of ac3.