NSW government sells ac3 shares to Kilkon Solutions

Sale part of government’s strategy to move away from being an IT services provider

The New South Wales government has sold its shares in IT services company, ac3, to Sydney-based systems integrator Kilkon Solutions for an undisclosed sum.

ac3 provides infrastructure, cloud and collaboration services to more than 50 government agencies.

NSW minister for finance and services Andrew Constance said the government decided to sell ac3 as part of its ICT Strategy. This involves a transition away from providing ICT services to buying services from suppliers.

However, he added that ac3 will continue to work with NSW government agencies.

According to Constance, Kilkon Solutions was selected as the preferred bidder following a public tender process in May 2013.

“A robust process was undertaken by the NSW government with the assistance of the independent financial, legal and probity advisors to select the preferred bidder at a price which was in excess of the retention value,” he said in a statement.

Kilkon Solutions was registered as an approved supplier under the NSW government’s ICT services scheme in November 2013. This means it is accredited to supply government contracts under a range of categories including enterprise architecture, data centre services, telephony and security as a service.

Kilkon Solutions managing director Simon Xistouris said ac3 will continue to operate autonomously for three months as the merger is completed.

“As this is a share sale, ac3 will continue to use the same name and ABN/CAN numbers. All ac3 contracts that are in place will remain valid,” he said in a statement.

“As soon as possible, we will begin to actively collaborate, share information and start the work to bring the teams together to build on our businesses’ strengths.”

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Tags NSW GovernmentKilkon Solutionsac3Andrew ConstanceMergers and acquisitions

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