New Zealand telco Spark has agreed to buy IT infrastructure and services firm Computer Concepts for some NZ$50m (US$33.2m) in an effort to boost its capabilities in the cloud sector. The deal comes a few days after the company raised NZ$100m (US$67.4m) in a bond issue.
New Zealand telco Spark (NZE:SPK) has agreed to buy IT infrastructure and services firm Computer Concepts (CCL) for some NZ$50m (US$33.2m) in an effort to boost its capabilities in the cloud sector.
The company said in a statement that the acquisition of the privately-owned South Island-based company aligns with its strategy of being the number one provider in the country’s “fast growing” cloud space.
“Spark will gain effective and immediate access and scale to specialised cloud capabilities and data centre capacity, particularly in Christchurch and other South Island locations,” the Auckland-based telco said.
CCL, which was founded in 1990 and provides ICT services to small and large businesses, is forecast to generate revenues of about NZ$50m (US$33.2m) and EBITDA of NZ$8m (US$5.3m) the year ended 31 March 2016. It will continue to operate as a standalone business and retain its own brand.
Spark embarked on a new strategy in 2013 which has seen it reposition itself around data-driven digital services and acquire IT services firms Revera and Appserv.
This latest acquisition will see it acquire the entire share capital of CCL parent Property Leasing Limited.
The telco intends to fund the acquisition, which doesn’t include debt, with cash and existing borrowing facilities.
Last week, Spark priced NZ$100m (US$67.4m) of fixed-rate bonds, with proceeds to be used for general corporate purposes.
Separately, Spark has agreed to buy a 70 MHz block of 2.3 GHz spectrum from ISP Woosh Wireless for NZ$9m, subject to regulatory approvals.