IT services provider PS&C has sold off its Allcom Networks business to Sydney managed services provider Crosspoint Telecommunications for $3.2 million.
The decision to offload its communications business was due to Allcom not being cohesively aligned to PS&C’s core strategy, the company said.
PS&C said its strengths now lie in security and consulting, with Allcom facing tougher competition in communications services, specifically network infrastructure, video conferencing and managed services.
“PS&C is fundamentally a people business delivering specialised services to our clients. The
Allcom Networks business did not align with where we are focusing the company’s efforts and did not provide PS&C with any competitive advantage moving forward,” PS&C managing director Glenn Fielding said.
“Our decision to divest was important to protect the integrity of the significant restructuring efforts across the past 24 months.”
Allcom was one of the four original solutions providers that formed PS&C in late 2013, merging with SAP partner Systems & People (S@P) and security companies HackLabs and Securus. The company went public a year later, raising $25 million to fund the merger.
“Crosspoint is a business technology solutions provider offering comprehensive end-to-end
managed IT solutions in voice, video, managed IT services and professional services. Allcom is a strategic investment for Crosspoint,” Fielding said.
“I would like to thank the staff at Allcom and wish them all the very best in the journey that lies ahead with Crosspoint.”
In the financial year ending 30 June, PS&C posted a loss after tax of $9.2 million, up 64 percent year-over-year.
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