Telecom, the country's biggest telecommunications company, has bought local data centre firm Revera for $96.5 million as it looks to get greater coverage in the cloud and build IT services.
The Auckland-based company will pay for Revera through its existing cash and borrowing lines, with the transaction expected to settle in May, it said in a statement.
Revera reported sales of $50 million in the year ended March 31, with earnings before interest, tax, depreciation and amortisation of $13 million, and expects to grow EBITDA by 15 per cent next year.
"This acquisition adds a respected brand that deepens our IT services portfolio for business customers, particular with regards to Cloud services," Telecom chief executive Simon Moutter said. "Both Gen-i and Revera will be better positioned to respond to evolving customer needs in the areas of big data and cloud computing."
The acquisition comes as Telecom goes through laying off up to 1,200 staff in a bid to strip out as much as $110 million in annual wage costs. The phone company is shifting its focus to offering services and away from building networks to become a data-driven and mobile-focused telecommunications operator.
