Synstar sells off Italian arm for a £4.5m deficit

News

Synstar sells off Italian arm for a £4.5m deficit

Synstar has disposed of the Italian branch of it business, Synstar Computer Services SpA (SCS SpA) and its subsidiaries for a loss of £4.5m to Gruppo ATR Srl of Brescia, Italy.

At the date of completion, SCS SpA had net assets of approximately £2.1m, including £2.4m of inter-company loans, which will be written off.
Jamie Snowden, an analyst at IDC, said: "For a company like Synstar was Italy a particularly strategic place to be? It has traditionally been a pain to break into for a number of reasons and any IT organisations that have done well in Europe have been Italian run and Italian owned. EDS bought into the Italian market and the same goes for CSC. It is really difficult to start up a company over there."
Synstar is intent on keeping a presence in Italy, with a proviso in the sale including a mutual support and development agreement, which guarantees Synstar will use Gruppo ATR to service pan-European contracts within Italy. Gruppo ATR will reciprocate by using Synstar for services to its customers outside Italy.
Commenting on the transaction, Synstar chief executive Steve Vaughan, said: "This disposal has the benefit of retaining our pan-European delivery capability to support our excellent customer base, but at the same time allows Synstar to concentrate on the remainder of the group."

A statement from Gruppo ATR, which has an established business in the supply and maintenance of print and mailroom hardware, said it viewed the acquisition of SCS SpA's capabilities in the maintenance of IT hardware and system support as complementary.

Email Alerts

Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
 

COMMENTS powered by Disqus  //  Commenting policy