Fujitsu finally buys Telstra's Kaz

Fujitsu finally buys Telstra's Kaz

Summary: Japanese technology giant Fujitsu has finally acquired Telstra's Kaz IT services division after what is believed to be several years of on- and off-again negotiations.

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Japanese technology giant Fujitsu has finally acquired Telstra's Kaz IT services division after what is believed to be several years of on- and off-again negotiations.

Announcing the $200 million deal this morning in a statement, Telstra's enterprise and government chief David Thodey, who oversees Kaz, said Telstra no longer saw ownership of an IT services business as a core part of its strategy. Telstra would work with Fujitsu and customers to ensure a "smooth transition", he said.

Fujitsu said the acquisition would make it the third-largest IT company by revenue in Australia, and give it a team of nearly 5,000 staff locally.

Telstra bought Kaz in 2004 for $333 million and has been plagued ever since by persistent rumours the company was looking to offload the business, which holds substantial IT services contracts with the likes of the Department of Defence.

More to follow.

Topics: Telcos, Outsourcing, Telstra, Tech Industry

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5 comments
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  • Telstra idiots

    Hilarious! Bunch of idiots ruined a once very good company and sold it for a $100mn less than they bought for. Ha ha ha
    anonymous
  • Not quite idiots

    Telstra have sold previous parts of Kaz as well as pulled some of it back inhouse, so to get 200mil for the remainder isn't to shabby.
    next time know the story before opening your mouth
    anonymous
  • re Not quite idiots

    You have to make allowances for that fool. Most of us already do, and realize who he is.
    anonymous
  • re Not quite idiots

    Right on. He obviously got flicked by Telstra somewhere along the line, and hasn't got over it.
    anonymous
  • KAZ projects

    I just wonder what will be the future of the projects developed by KAZ (eg Courtlink). Will Fujitsu pick them up?
    anonymous