Telecom Signs Agreement For Computerland NZ
Telecom Signs Sale And Purchase Agreement For Computerland NZ
Telecom has signed a sale and purchase agreement to acquire Computerland NZ Ltd for $26 million.
Computerland NZ Ltd will continue to operate as a stand-alone business within Telecom for at least 12 months with Computerland CEO Chris Mackay reporting directly to Telecom Chief Information Officer Mark Ratcliffe.
Mr Ratcliffe said the acquisition is a very positive development for Telecom and for its information communications technology (ICT) business.
“Telecom has had a strategic relationship with Computerland for some time and sees this acquisition as an excellent growth opportunity for both organisations, for our customers, 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.
“Computerland is a high profile market leader in infrastructure support services with a strong brand, a great reputation and a comprehensive market reach in all major locations throughout New Zealand.
“The acquisition of Computerland will help to extend Telecom’s ICT capability, making the provision of infrastructure services far more accessible to customers in metropolitan and provincial areas,” Mr Ratcliffe said.
“For customers, this means that wherever you are in New Zealand and whatever your business technology issue is, we will have a solution for you.”
“A further benefit is the ability of Computerland’s franchise partners to gain efficiencies through the scale and capability of Telecom Advanced Solutions and Gen-i on behalf of their customers,” Mr Ratcliffe said.
“Each franchise operation will continue to operate as it does today – and to be locally owned and operated”.
The current expectation is that Telecom should be in a position to settle the acquisition of Computerland NZ Ltd at the end of August 2004, Mr Ratcliffe said.
The close timing of the Gen-i and Computerland acquisitions, while opportune, has been largely coincidental and Telecom is not actively pursuing any other acquisition opportunities at this time, Mr Ratcliffe said.
Telecom will continue to work in conjunction with its existing integration partners, Mr Ratcliffe added.
Computerland NZ Ltd has 360 staff across four locations in Auckland, Hamilton, Wellington and Christchurch with a further 220 staff employed in branded Computerland franchise operations in nine provincial locations. Computerland NZ Ltd and its franchise partners provide total technology solutions from consultation, design and development through to implementation to Corporate and medium enterprise businesses.
Computerland NZ Ltd earned revenues of around $100 million and EBITDA of approximately $3.6 million for the year ended December 2003.
Advanced Solutions is Telecom’s dedicated trans-Tasman
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. The recent Gen-i acquisition adds systems
integration, managed solutions, product sales (as part of
solutions) and activities in software development and IT
training to the capability mix.