Melbourne IT has offloaded its digital recording division at a $1.2 million loss, with Record Holdings buying the business for $6.3 million.
The listed IT services company said that the ForTheRecord (FTR) business was no longer a strategic fit, as it sharpens its focus on internet services.
FTR provides digital recording and content management services for court rooms, law enforcement venues and public venues across several countries.
Melbourne IT managing director, Theo Hnarakis said that the division and its staff couldn’t be in better hands.
“We’ve had a strong working relationship with Record Holdings for several years and FTR is a perfect fit for their business, both technically and culturally,” Mr Hnarakis said.
“This deal makes excellent sense for both parties and it is gratifying to know that the FTR business, staff and customers could not be in better hands.”
Record Holdings, which also owns recording and transcription company Auscript, said the acquisition is another step in its planned expansion in the digital recording market
Record Holdings CEO & managing director, Peter Wyatt, said his company was committed to developing FTR’s technology and the buy builds on the recently forged partnership between FTR and Record’s Court Recording Solutions business.
Melbourne IT, which is an Uncapped 100 stock, fell by 2.1% to $1.94 at 1145 AEST.