Ann: Sale of ITS business, page-36

When I first saw this earlier I couldn't believe it and had to keep re-reading the announcement.

L7 Solutions: $28M annualised revenue, cash flow positive and immediately earnings accretive.

All for $500k.

At first I thought this is too good to be true. Indeed, it appears that revenue has plummeted from north of $40M to $28M in a very short time frame. However, I believe that the original founders of this company would be more than confident that they can turn this trend around if they're willing to purchase the business. L7 would integrate very easily and would be a much better culture fit for CNW.

Also, I believe there is nothing sinister going on - Vocus was no doubt looking to dispose of this part of the group regardless and the sale price would make little difference to a telecom giant of this size. All in all we've managed to greatly increase the size of our business for peanuts and increased our odds of success in the upcoming WA government tenders.