Telstra sells its IT unit to Fujitsu for $256 million

Telstra, Australia's biggest telecommunications company, will sell its information technology services unit, KAZ Group, to Fujitsu for A$200 million ($256 million).

The purchase of KAZ will make Tokyo-based Fujitsu the third biggest IT company in Australia, employing nearly 5000 people, the companies said in a statement yesterday.

Telstra's enterprise and government unit managing director, David Thodey, said the Melbourne-based company was selling KAZ because IT services were no longer a core part of its strategy.

"Telstra will continue to deliver centralised network services to our customers through our Network Enterprise Services business," Thodey said.

Fujitsu will also establish a strategic alliance with Telstra's enterprise and government division, building on existing working relationships.

"The acquisition is in line with Fujitsu's long-term objectives to grow its Australian business," Fujitsu Corporate first senior vice-president Richard Christou said. The deal is subject to regulatory approvals.

Telstra said in its first half report last week that revenue from IT services fell 20 per cent to A$170 million from the corresponding period.

- AAP