West Perth diversified labor hire group Integrated Group Ltd has completed due diligence for the sale of its training subsidiary Integrated Training Pty Ltd to TodayCorp Pty Ltd.
West Perth diversified labor hire group Integrated Group Ltd has completed due diligence for the sale of its training subsidiary Integrated Training Pty Ltd to TodayCorp Pty Ltd.
The sale price is $1 million, by way of TodayCorp shares, and in addition Integrated has subscribed to a $1.5 million convertible note in TodayCorp, as part of a broader funding and growth plan for TodayCorp.
TodayCorp is a Sydney-based provider of training software and services. This transaction is understood to substantially increase its national presence and make it a leading player in the area of accredited training.
Integrated CEO Chris Sutherland, whose appointment to the board was announced today, also confirmed to WA Business News that the company had ended its involvement in executive search. Integrated general manager executive recruitment Stephen Stock left the company on Friday.
Mr Sutherland said the operation had focused around Mr Stock who was expected to establish his own business.
The changes follow a review conducted by Mr Sutherland following his arrival earlier this year from his previous role as executive director, asset services at listed engineering group WorleyParsons Ltd.
In recent weeks he has also completed the sale of two boats to Mermaid Marine Ltd, a deal announced before his appointment.
"Today is really the first as us us a simpler more focused organisation," Mr Sutherland said.
He said the accredited training operations, despite being big by Australian standards, were a drain on the company. Their acquisition is a substantial step forward for TodayCorp in its development in the accredited training market, and it extends its national presence and compliments its joint venture with Sydney-based Australian Business Limited.
The deal also is the first part of a partnership arrangement between Integrated and TodayCorp, which will see Integrated customers use the TodayCorp "Versity" eLearning platform.
It is intended this will add further value to Integrated's recruitment and labour hire offer.
Also, Integrated has sold its 60 per cent interest in Transqual Pty Ltd, a small specialist transport training provider to the remaining 40 per cent shareholders.
In the past three months, Integrated has completed the disposal or closure of nearly all non-core or underperforming businesses and assets, and it expects to complete the balance by June 30.
Mr Sutherland said the core recruitment, labour hire and managed labour business continues to trade strongly and will benefit from the disposal of non-core assets which had distracted management focus for the past 12 months.
