Telstra sells Kaz offshoot
Telstra has agreed to sell Kaz Singapore, which was once part of its Kaz IT and infrastructure support business, to investment firm Connxion Ventures Limited.
Kaz Singapore was transferred out of Kaz Group into Telstra international in 2005, according to Fujitsu spokesperson Angela Coombes. What had remained of Kaz after parts were moved into Telstra or sold to other organisations had been sold to Fujitsu for $200 million in May last year. Telstra had initially purchased the Australian IT services business in 2004 for $333 million.
Connxion's chief, Bill Brooks, said the acquisition of Kaz will allow the company to work with Telstra International on joint projects.
"This acquisition provides [Connxion] with a major growth opportunity. It presents us with significant organic growth opportunities, it strengthens two of our key verticals — data and online services — expands our presence in Asia and strengthens our blue chip customer base. It also provides opportunities and Telstra International to co-operate on joint projects," said Brooks in today's announcement.
The purchase price wasn't disclosed, but the acquisition was set to be funded from Connxion's recent capital raising.
Telstra still has some Kaz assets in Hong Kong, according to Telstra spokesperson Peter Taylor. "We will not make any changes to current strategy for our [Hong Kong] business without full consultation and agreement with our [joint venture] partner in Hong Kong," he said.