Quadrant and its partners are to buy the enterprise services division of Arq Group (ASX: ARQ).
The managers are former interim chief executive Tristan Sternson and directors Justin Parcell and Cameron Boog. Sternson stepped down from his leadership role with Arq Group on completion of the transaction.
The Arq brand name is part of the acquisition so Arq Group, formerly Melbourne IT, will have to undergo a name change if it is to continue operating its remaining SMB division which deals with domain name registrations and renewals. That division is, however, also up for sale.
On 27 February, Arc reported an after-tax loss of $129,028 for the 2019 calendar year.
Arc has agreed for proceeds from the sale of the enterprise services division to be used to pay down debt. The company was granted waivers by its lenders for financial covenant breaches in the September and December 2019 quarters and is continuing to work with the lenders to manager its debt.