Menu
Cellnet Australia sells IT operations

Cellnet Australia sells IT operations

Embattled distributor, Cellnet (ASX: CLT), has offloaded its Australian IT operations to rival, Avnet.

The deal is expected to release $2 million in working capital over the next two months and have little impact on earnings, Cellnet claimed in a statement to the ASX.

Cellnet CEO, Stuart Smith, told ARN a decision on how to use the funds raised from the sale of the IT operations had yet to be made.

“We are looking at all options, obviously in conjunction with our major shareholder CVC and outside parties,” Smith says.

It is understood, nine out of 15 staff – excluding warehouse staff – have been offered positions at Avnet.

“The staff moving over, in the current economic environment, we saw that as a positive,” he says. “The customer base in terms of continuity is all hopefully going to be fairly seamless.”

Earlier this month the fate of the IT business hit the spotlight following revelations Cellnet was looking to sell the division after the distributor’s decision to offload its New Zealand IT operations to Datastor.

Last year, rival distributor, Dicker Data, revealed it had been in discussion with Cellnet’s majority owner, CVC Ltd, to acquire parts of Cellnet’s business.

Cellnet is expecting to post up to $12 million in losses in the full year to June 30, according to recent guidance documents.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cellnetinternational news

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments