Telecom buys Computerland for $26m

By PAUL BRISLEN

Telecom has bought IT systems integrator Computerland for $26m to further cement the telco incumbent's position in the high-value corporate market.

The purchase comes two months after Telecom bought Gen-i for $62.5 million. The merger of Gen-i with Telecom's internal Advanced Solutions Group is still ongoing.

Computerland has 360 staff in Auckland, a further 220 staff around the country in franchise operations and last year saw a trading profit of $3.6 million on revenues of $100 million.

Telecom's Chief Information Officer Mark Ratcliffe said the franchise operation would be unchanged by the merger.

Gen-i is somewhat larger with 770 staff and a trading profit of $7 million for the year to April 30 on revenue of $155 million.

Telecom will keep Computerland at arm's length for 12 months, operating the IT services firm as a stand-alone company within the Telecom group while the merger of Gen-i and Advanced Solutions continues.

Telecom's Ratcliffe said Computerland's expertise in the small to medium enterprise space would complement its existing expertise in the high-end corporate market through Advanced Solutions and Gen-i.

"The acquisition of Computerland will help to extend Telecoms ICT capability, making the provision of infrastructure services far more accessible to customers in metropolitan and provincial areas," said Ratcliffe.

Computerland CEO Chris Mackay will report directly Ratcliffe.