Telecom pays $17M for Appserv to widen cloud offering
Telecom pays $17M for Appserv to widen cloud offering to smaller businesses
By Tina Morrison
Jun. 18 (BusinessDesk) - Telecom Corp., New Zealand's largest telecommunications company, agreed to pay $17 million for cloud services specialist Appserv, widening the services it can offer to businesses after purchasing Revera last year.
"Revera is a cloud computing specialist that provides cloud solutions predominantly for government and corporates, while Appserv brings specialist cloud desktop-as-a-service solutions for a range of business sizes, particularly small to medium sized," Telecom chief executive Simon Moutter said in a statement. "The combined capabilities of Appserv and Revera mean we can now offer leading cloud computing expertise to all New Zealand businesses, through Telecom and Gen-i sales channels."
Auckland-based Telecom, which will change its name to Spark in August, plans to boost earnings by shifting its focus to data, mobility and cloud services. Closely-held Appserv, also based in Auckland, has more than 14 years of consistent growth and offers a complete IT infrastructure service to business.
Shares in Telecom last traded at $2.75, and have gained 19 percent so far this year. The stock is rated an average 'hold', according to analysts polled by Reuters.
The agreement to buy Appserv is expected to be completed by early July, Telecom said.