FlexiGroup to acquire Spark's ICT leasing unit

New Zealand telco Spark has inked a NZ$106 million conditional agreement with FlexiGroup to sell Telecom Rentals.

Spark is selling its Telecom Rentals ICT equipment leasing business to FlexiGroup.

The New Zealand-based telco announced that it has entered into a conditional agreement to sell TRL for NZ$106 million to the Australia-listed leasing specialist.

FlexiGroup said the deal will consolidate its distribution footprint in New Zealand. It told investors that the buy would enable it to provide full market coverage of retail, SME, education, and enterprise clients, and improve its sales presence to government in Wellington.

"With approximately 1,350 customers across education, datacentres, digital business, and government, this acquisition will see us become the largest technology leasing provider in New Zealand," FlexiGroup CEO and managing director Tarek Robbiati said.

TRL makes approximately NZ$5 million in earnings before interest, tax, depreciation, and amortisation (EBITDA) a year.

The transaction is expected to be completed by April 30, conditional on a change of control consent from the New Zealand Ministry of Education.

Spark said the sale is in line with its strategy to focus on digital services.