Telecom signs $150m local deal

By PETER GRIFFIN

An Auckland-based technology company setting its sights on the European secure network market has come home to find a telecommunications partner, signing a deal with Telecom expected to be worth $150 million to the telco over the next five years.

The deal, in essence an outsourcing agreement in which Telecom will develop a "high-tech problem solving" centre for network-related queries, is also expected to create up to 380 jobs in Telecom's fledgling Advanced Solutions division over the next five years.

EMS Global's founder, Waynne Dartnall, said the company expected the bulk of its business to come from the health and financial sectors. He would not reveal the names of customers secured so far.

The contract with Telecom follows last week's move by UK-listed venture capital firm 3i to invest $17 million in EMS Global, taking a 35 per cent stake in the company and pushing up its value to just under $50 million.

In other deals, EMS Global has linked with Ebone, a fibre optic backbone provider with a network throughout Western Europe, and Landis, a network technology distribution company.

The centre will provide support for EMS Global's main security product - ECIS (e-commerce infrastructure service) - which allows companies to communicate securely with business partners.

Advanced Solutions general manager, Chris Quinn said the contract was likely to generate $3 million in its first year.

The centre would guard customers' networks against attacks by hackers, spammers and viruses.

EMS Global, which employs 50 people, will move its head office to London.

But the technology development is expected to continue in New Zealand.