UXC has agreed to sell its field solutions group to investment and advisory firm Cashel House in line with a plan to focus on core IT businesses.
The service provider informed the stock exchange that it had a sale and purchase agreement with Cashel House (pdf). The deal was expected to be completed within six weeks.
No financial terms were disclosed; however, UXC announced that the offer was “within the financial terms expected ... and is in the view of the management and the board as representing fair value”.
The proposed sale of its field solutions group followed a poor result by the group in the six months ending December 2009 due to the discontinuation of Federal energy efficiency initiatives.
UXC’s field solutions group provided outsourced infrastructure and environmental solutions to utilities and government organisations. Its business and professional solutions groups provided IT services to public and private sector clients.
Directors approved plans to “focus on core business” and divest its environmental and retail solutions groups in January.
At the time, managing director Cris Nicolli expected to make write-downs of about $7 million as a result of the divestment decision.
“The write-downs are but a fraction of the losses contributed by these businesses in the previous year, and will be incurred to give us certainty of the non-recurrence of future operational losses when divestment is complete,” he stated.
Nicolli said yesterday that the Cashel House agreement was “a major step forward in the execution of the UXC strategic plan”.
The deal included all businesses and assets of UXC’s Utility Asset Management, Skilltech Consulting Services, Infrastructure Constructions, UXC Metering and Fieldforce Services.