ASG sells Bentley data centre
UPDATE 3.15pm: IT services firm ASG says it has sold its Bentley data centre to Sydney-based Vocus Communications for $11.7 million.
The company said it would use the cash to accelerate debt reduction and expected it would help lower its net debt to $10 million by the end of this financial year.
ASG said its board had previously identified the Bentley Data Centre as a non-core asset.
"While important to the workings of the group, it was recognised that the data centre would be better in the hands of a partner for whom data centres were core to their business," the company said in a statement.
ASG would remain a tenant of the centre and Vocus would become a preferred supplier to ASG for telecommunications services across the group.
ASG chief executive Geoff Lewis said the opportunity to extract far greater synergies by entering the partnership with Vocus was persuasive.
He said it would also allow the company to offer increased services to existing customers.
ASG said unaudited full-year results showed strong organic growth for the company, a record operating cash position and second-half EBITDA margins in line with those in the first half.
ASG shares closed down 1.5 cents, or 2.7 per cent, at 54 cents while Vocus shares were down two cents at $5.16.