Cellnet sells IT division assets to Avnet

Avnet has also taken on most of the IBM inventory on hand from Cellnet.

Stuart Smith, group CEO of Cellnet said, the divestment of the IT segment in Australia will release $2 million working capital over the next two months.

"Other than the release of working capital, the transaction will not have a material impact from a financial perspective," he said.

"As in New Zealand, the fact that a number of staff have been offered alternative employment is positive in the current economic environment."

The move to sell its Australian IT division comes off the back of Cellnet's decision to sell its New Zealand division to Datastor, earlier this month.

At the time, Smith said the divestment of the division in NZ is part of a strategy by the group to focus on its core competencies and invest in areas "where the margins and return on working capital employed are improved."

CRN will keep readers updated with further information.