Telecom acquires Revera for $96.5 million
Telecom has today announced it has signed a conditional agreement to acquire privately-owned New Zealand IT infrastructure and data centre company Revera Limited for $96.5 million.
The telco says the acquisition will add considerable momentum to the long-term growth strategies of Telecom and Revera, improving capabilities, expanding market reach and deepening the overall Telecom group offer.
“We’re pleased to have a computing infrastructure company with the track-record and reputation of Revera joining our team and strengthening our group," says Simon Moutter, CEO, Telecom.
“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.
"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.”
Telecom says the Revera brand will be retained and the company will continue to run as a standalone business, providing the customers of Gen-i, Telecom’s ICT services division, with immediate access to additional Cloud capabilities and data centre capacity.
"Opportunities to collaborate across Gen-i and Revera will be actively explored in order to leverage our combined relationships across our respective client bases and target the best possible customer outcomes.
“This is a fantastic move for Gen-i and for Revera, and more importantly, for our clients," says Tim Miles, CEO, Gen-i.
"The acquisition matches the future focus of Gen-i, giving us more data centre capacity, more virtualisation expertise, and more horsepower to support clients.
"This is one of a number of steps being taken by Gen-i towards becoming more agile, cost-effective and responsive."
Miles says the Telecom division is refocusing around managed infrastructure services across IT and communications.
"This is a critical step in fast-tracking our growth and further centring our business on clients and what they most value," he says.
Citing the work of Revera founders Roger Cockayne and Wayne Norrie 10 years ago, Revera CEO Robin Cockayne says the deal is a fitting tribute to the pair.
"I can think of no better endorsement of Roger and Wayne’s vision and the hard work and commitment of Revera staff than a company of Telecom’s importance staking a chunk of its future on Revera," he says.
“Revera is one of a few cloud-focused infrastructure providers in New Zealand.
"This focus puts us at the sharp end of the utility IT services market.
"However, leading this market requires continued development of new data centres 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."
Cockayne says no other single supplier carries all the necessary skills and resources that customers want compared to Revera.
"With owner Telecom, Revera will broaden its capabilities and as-a-service platform offerings, and will gain the benefits of Gen-i’s sales force selling for us to accelerate our growth.
"Gen-i’s strengths in mobility and unified communications and Revera’s cloud focus are complementary."
Cockayne also says it is important for the company to maintain it's individuality following the acquisition, retaining its unique business philosophies.
"Revera will still be Revera and our customers should expect the same commitment to their immediate satisfaction and future goals,” he says.
Echoing Cockayne's views, Miles believes Revera’s strengths complement Gen-i’s strengths, claiming clients to be the biggest winners out of the deal.
"Gen-i is an established leading provider of managed infrastructure services from its network of high resiliency data centres, and is delivering new facilities in Christchurch and Auckland," he says.
"Revera has led the market with its utility computing service offerings, and has additional data centre capacity in Wellington.
“Both organisations are market leaders focussed on delivering innovation in the sector and value to our clients.
"While both Revera and Gen-i will benefit from this move, clients will be the big winners from our combined network of existing and Greenfield data centres and comprehensive suite of Cloud services offerings.”
Techday will be speaking with both Gen-i CEO Tim Miles and Revera CEO Robin Cockayne later this morning, so check back for updates.
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