UXC touts largest ICT services deals ever

Deals illustrate it is a viable competitor to IBM, Accenture, CSC, according to the managing director

UXC (ASX:UXC) has picked up two Victorian public sector contract wins, securing managed IT infrastructure contracts for up to five years with the Victoria WorkCover Authority and the Transport Accident Commission.

“This is a major milestone for UXC and represents the largest Information Technology contract signings by the company,” an ASX statement from the company this week reads.

According top UXC managing director, Cris Nicolli, the deals proved the company was a viable alternative to arch-rivals and global service providers IBM, Accenture and CSC.

The financial value of both contracts was not disclosed by the company, but UXC alluded one of deals was valued at $50 million during its financial earnings presentation in November.

"It is a major win for us and further establishes UXC as a true alternative to multi-national organisations with operations in Australia,” he said in the ASX statement.

“Our success should help provide the confidence for more customers to engage with Australian owned and operated organisations for their IT and support requirements."

The deals come a time of transition for the company. In late November, chairman Geoff Lord resigned his executive duties and appointed Nicolli, formerly CEO of the UXC business solutions group, as UXC managing director.

While revenues have continued to grow from the company since 1999, earnings have declined from a peak of $56.1 million in 2008 to $50.4 million in 2009 and $50.6 million in 2010.

The deals also come a year on from announced plans to find a buyer or demerge in an effort to refocus the company. In a market update earlier this month the company reaffirmed these plans, stating it would divest itself of its non-core retail solutions and its loss-incurring environmental solutions businesses.

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Tags Cris NicolliUXCvictorian government

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