Telecom Signs Gen-I Conditional Sale Agreement

Telecom Signs Conditional Sale And Purchase Agreement For Gen-I

Telecom has signed a conditional sale and purchase agreement to acquire systems integrator Gen-i from Cullen Investments for $62.5 million.

Telecom Chief Information Officer Mark Ratcliffe said the acquisition is a very positive development for Telecom and for its Information Communications Technology (ICT) business Telecom Advanced Solutions (TAS).

“Gen-i is a highly respected organisation whose expertise extends ours. Telecom sees this acquisition as a tremendous opportunity for growth for both organisations and for the wider ICT services market,” Mr Ratcliffe said.

“Telecom’s strategy has been to explore ways of further growing its ICT business through a three-pronged approach of organic growth, strategic alliances and acquisitions.

“The acquisition of Gen-i will help to move Telecom and AAPT further into the ICT space in both New Zealand and Australia and fully integrate telecommunications and ICT delivery right to the desktop for our business customers.”

TAS has established a strong position in the trans-Tasman market, combining the strengths of telecommunications and information technology to unlock the value of convergence for New Zealand and Australian enterprises.

“The acquisition of Gen-i will enhance this position further, extending Telecom’s capability to deliver ICT network-based solutions to corporate and medium enterprise customers,” Mr Ratcliffe said.

The current expectation is that Telecom should be in a position to reach settlement on the acquisition of Gen-i towards the end of June 2004, Mr Ratcliffe added.

Gen-i has 716 staff across nine locations in both New Zealand and Australia and provides total technology solutions from consultation, design and development through to implementation, support and training to large corporate and public sector clients. Gen-i earned revenues of $155 million and EBITDA of $7 million for the year ended April 2004 and has forecast revenues of around $170 million and EBITDA of approximately $11 million for the year ended April 2005.

Telecom Advanced Solutions is Telecom New Zealand’s dedicated information and communication technologies business.

Its capability includes mobile and commerce applications, IP and Internet security, ICT infrastructure, hosting and storage solutions, contact centre solutions, and wireless, data and voice services.

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