Telecom has signed a conditional agreement to acquire datacentre company Revera for $96.5 million.
The Revera brand will be retained and Revera will continue to run as a standalone business and customers of Gen-i, Telecom’s ICT services division, will have "immediate access to additional cloud capabilities and datacentre capacity", according to a joint announcement by the companies.
"We're mandated to carry on the way we are," says Revera CEO Robin Cockayne. "They [Telecom] don't want us to change in any way whatsoever," he adds. Gen-i CEO Tim Miles agrees and adds that there will be "no people changes as part of this at all". Revera will, however, have its own advisory board.
"They will be our Infrastructure-as-a-Service arm," says Miles about Revera. "We could build that capability but I far rather have acquired it," he adds.
“As previously announced, Telecom is refining its business strategy to become a future-oriented, competitive provider of communication, entertainment and IT services delivered over its networks and the cloud," says Telecom CEO Simon Moutter in a statement. "This acquisition adds a respected brand that deepens our IT services portfolio for business customers, particularly with regards to cloud services. Both Gen-i and Revera will be better positioned to respond to evolving customer needs in the areas of big data and cloud computing.”
“Revera is one of a few cloud-focused infrastructure providers in New Zealand," says Cockayne. "This focus puts us at the sharp end of the utility IT services market. However, leading this market requires continued development of new datacentres and services. We’ve enjoyed spectacular growth. But sustaining our momentum requires new investment and resources. This transaction ticks those boxes and helps Revera to build on its success so far."
Addresssing rumours that relate this acquisition to staff reviews at Gen-i, Miles assures "the two things are unrelated". "It doesn't mean anything for Gen-i staff," he says.
Revera employs 140 staff and operates five data centres in Auckland, Wellington, Christchurch and Hamilton. Telecom announced in March that up to 1230 jobs may go by mid this year.
The takeover will be completed in May.