Spark-owned Computer Concepts Limited (CCL) has inked a conditional agreement to sell the operational parts of its network services division.
Mark Jurgeleit, CCL’s current general manager of network services, is buying the operation and will set it up as a new business called Octave, which was incorporated in September.
No sale price was released in a statement made to the NZX this morning.
CCL and Spark will retain all existing contracted client relationships and CCL will engage Octave as a sub-contractor to deliver network services under the terms of the deal.
Existing network services customers won’t experience any disruption or change, Spark said today.
The decision to sell the network services division is consistent with CCL’s shift to a simpler operating model following its brand merger with Spark’s wholly owned cloud business, Revera, in February 2019, said Andrew Allan, CEO of CCL.
“As part of the Spark business, CCL currently has areas of overlapping investment within network services and capabilities that already exist in the Spark Group.
"Consequently, despite divesting this division, the breadth of CCL’s end-to-end services remains unchanged – and we will continue to offer our clients the full suite of network services.”
Allan said the sale would allow the CCL business to deepen its focus on growing its multi-cloud and ICT services.
“By selling CCL’s network services business assets to Octave, a standalone business that will still work closely with us, we will continue to benefit from a tightly integrated network business while freeing up our resources to focus on delivering Spark’s wider cloud services strategy,” he said.
All existing permanent CCL network services employees will be offered the opportunity to move to Octave, which will initially continue to operate out of CCL premises.
CCL will retain the majority of its business, which provides full spectrum cloud and ICT services with the support of over 700 employees.
“It’s been an incredible journey for CCL, from an idea born in 2015 through to an extremely fast-growing network today," said Jurgeleit, who joined CCL from fibre company FX Networks in June 2015.
"Becoming an independent business from Spark will now allow Octave to focus wholly and solely on building excellent network service solutions.”