Telecom NZ has agreed to pay $96.5 million to acquire IT infrastructure and data centre company Revera Limited in a move meant to deepen the telco’s range of cloud services for business customers.
The deal provides more data centre capacity and virtualization expertise to Telecom’s ICT services division, Gen-i, said the division's chief executive, Tim Miles.
Telecom chief executive, Simon Moutter, said the deal better positions both companies “to respond to evolving customer needs in the areas of big data and cloud computing.”
The acquisition closely follows a cull of 120 Australian jobs at Gen-i and an announcement that the division would narrow its focus to large customers.
The acquisition of Revera “is one of a number of steps being taken by Gen-i towards becoming more agile, cost-effective and responsive,” said Miles.
“We’re refocusing around managed infrastructure services across IT and communications,” he said. “This is a critical step in fast-tracking our growth and further centring our business on clients and what they value.”
Revera chief executive, Robin Cockayne, said the acquisition was necessary to keep his company going.
“We’ve enjoyed spectacular growth,” he said. “But sustaining our momentum requires new investment and resources.”
The acquisition allows Revera to expand its as-a-service services and harness Gen-i’s sales force, he added.
Telecom plans to retain the Revera brand and Revera will continue to run as a standalone business. “Revera will still be Revera and our customers should expect the same commitment to their immediate satisfaction and future goals,” Cockayne said.
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