Advanced Computer Software PLC (AIM: ASW) said it will outsource the infrastructure resale business of its recent acquisition, Business Systems Group Holdings PLC, to BT Engage IT Ltd with effect from July 1 2009.
The software and IT services provider to the Primary Care sector said the move is a result of its strategic review so far of BSG, which it announced when the business was acquired last month.
Under the agreement, BSG will continue to provide IT services to the shared customers while BT Engage IT will meet their hardware requirements. BSG, as part of the ACS group, will now concentrate on the core business of providing managed services and solutions and of supporting the roll-out of new ACS's health care product offerings.
BSG will receive a percentage of the gross margin achieved by BT each year for three years subject to a minimum of £0.5 million per annum and 26 BSG employees will be transferred to BT Engage IT. The proceeds will be used by ACS to pursue its growth strategy.
The infrastructure business contributed £1.1 million to overheads of the BSG group in the year to March 31 2008.
ACS CEO Vin Murria said: “This agreement allows us to continue focusing on the growth of managed services whilst still supporting customers in their infrastructure needs.”
ACS in May announced plans to buy BSG in a recommended cash deal valuing BSG at around £15.5 million. The deal became unconditional in all respects on June 15.www.proactiveinvestors.co.uk
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