Spencers to scoop Asia Online clients

By ADAM GIFFORD

Asia Online's New Zealand operation is set to pass into the hands of the Spencer family through their investment vehicle Dresden Equities, which also owns internet service providers Ezysurf, Esurf and Virtual ISP.

The company was placed into voluntary liquidation by directors last Thursday, after venture capitalists decided to pull funding for the Hong Kong-based parent company and all its subsidiaries around the Pacific rim.

Dresden spokesman Michael Spencer said the purchase, which he hoped to finalise today, made Dresden one of the largest business-focused ISPs in New Zealand, and the only one that is carrier neutral.

"No one can touch us apart from the telcos," he said.

Dresden has about 7000 individual customers through the various Virtual ISP brands, and a further 1000 corporate customers.

It will add a further 10,000 customers from Asia Online, including a large number of corporates. Originally the Internet Company of New Zealand, Asia Online was one of the earliest ISPs in New Zealand and the first to target the business market.

Mr Spencer would not reveal the price offered, but "it reflects the customer base and value associated with that.

"We're looking to continue our consolidation in the market, with the intention to be the predominant independent ISP in the country with a focus supporting business clients."

Dresden was one of several ISP-related businesses to put in a bid late last week with liquidator Kerryn Downey of KPMG.

By Sunday morning it had become the preferred bidder, because it was not attempting to cherry pick.

The new owner will keep on the 30 existing staff, and Mr Spencer said there were considerable mutual cost benefits.

He said the company was losing money because of the international corporate structure of the Asia Online group, which at its peak included 900 staff.

"Asia Online is a viable business in the New Zealand market and customers can look forward to continuation of service," Mr Spencer said.

Across the Tasman, Ozemail has bought rights to the domestic customer base of Asia Online Australia for what is believed to be between two and three times monthly revenues.

Administrators KPMG are looking at selling other parts of the business, including its hosting and corporate services.