City Beat: The boss of one of Australia’s fastest growing IT recruitment groups has sold half the business

BRISBANE bizoid Steve Scanlan quietly offloaded the half-stake in his Recon Solutions and Recon Technology to newly-listed labour hire group People Infrastructure for $2.8 million earlier this month

Illustration of Steve Scanlan by Brett Lethbridge

THE boss of one of Australia’s fastest growing IT recruitment groups has sold half the business in a bid to turbo-charge its expansion.

Brisbane bizoid Steve Scanlan quietly offloaded the half-stake in his Recon Solutions and Recon Technology to newly-listed labour hire group People Infrastructure for $2.8 million earlier this month.

It was one of those deals that just flew under the radar while most of us were enjoying a bit of holiday downtime at the beach.

Scanlan told City Beat yesterday that he knocked back a full buyout scheme from an English mob early last year and, at first, also rebuffed the 50 per cent offer from PI.

But PI grew more attractive as a partner once Scanlan realised that its 22 offices around the country and NZ offered an ideal springboard to take Recon to the proverbial next level.

The two camps also share a similar corporate culture, with Recon considered a bolt-on acquisition set to retain plenty of independence.

“It was a no brainer in the end for me,’’ Scanlan said.

PI, which launched in Brisbane more than 20 years ago, raised $25 million ahead of its float in late November and has forecast revenue of $214 million this year.

It’s chaired by entrepreneur Glen Richards, the Shark Tank star who also oversees the My FootDr group as it gets ready to go public.

PI investors have already done very well, with shares offered at $1 a piece now trading at $1.45 as of yesterday’s close.

That’s good news for Recon, which stands to reap another 1.5 million PI shares if it hits performance targets through 2020.

It already received $500,000 worth of shares and $2.3 million in cash as part the sale.

IN THE RING

Jeff Horn fights Terence Crawford on April 8 in New York.

SPEAKING of Scanlan, he jets out to New York on April 8 to watch his long-time mate, boxing champ Jeff Horn, defend his crown against the fiercesome Terence Crawford.

By pure coincidence, Scanlan will be in the ring the night before, meaning he could well be boarding the flight with a few prominent cuts and bruises.

He’s fighting in a charity match as one of the undercards ahead of the headline clash between Dennis Hogan and Jimmy Kelly at Brisbane’s convention centre.

Scanlan started training last month and still needs to lose 10kg.

MYSTERY SOLVED

Friday's Riverside has changed hands.

THE sale price of Friday’s Riverside was shrouded in mystery earlier this month when news emerged that it was changing hands for the first time since it opened in 1986.

But City Beat spies report that that one of the Brisbane CBD’s best known watering holes was snapped up for about $6.7 million by Australian Venue Co, which formerly traded as the Dixon Hospitality Group.

Kim Weller, the majority owner of Weller Hotels & Taverns group, did not return a call seeking comment yesterday. Another owner, Nigel Kilvington, has repeatedly refused to divulge the price.

Meanwhile, Australian Venue Co, which already operates Kingsleys and the Buffalo Bar in Brisbane, is looking to further expand its footprint.

The company is understood to be among the interested parties running the ruler over Darling and Co, the former Iceworks bar on Given Terrace opposite Suncorp Stadium.

BACK TO THE FUTURE

Scott Emerson is becoming a spin doctor.

IT’S back to the future for Scott Emerson, the former LNP frontbencher who lost his seat at the last state election.

Emerson, an ex-journo who defected to PR before going in to politics, plans to reprise his work as a spin doctor.

He starts work tomorrow for Brisbane lobbying mob SAS Group, which has long featured a stable of former pollies and media types.