TEL 0.88% $2.87 telecom corporation of new zealand limited

Ann: ASSET: TEL: Telecom acquires Business Cloud specialist Appserv

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    • Release Date: 18/06/14 09:07
    • Summary: ASSET: TEL: Telecom acquires Business Cloud specialist Appserv
    • Price Sensitive: No
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    					TEL
    18/06/2014 09:07
    ASSET
    
    REL: 0907 HRS Telecom Corporation of New Zealand Limited
    
    ASSET: TEL: Telecom acquires Business Cloud specialist Appserv
    
    Market Release
    
    18 June 2014
    
    Telecom acquires Business Cloud specialist Appserv
    
    Move further enhances Telecom's leadership in Cloud computing
    
    Telecom announced today it has signed a conditional agreement to purchase all
    of the shares in leading business Cloud services specialist Appserv Limited.
    The agreement is subject to conditions which are expected to be completed by
    early July 2014.
    
    Telecom New Zealand Chief Executive Simon Moutter said that the acquisition
    of Appserv adds to the significant investment across Telecom and Gen-i in
    Cloud services and provides a major new piece in the Cloud jigsaw.
    
    "We see this as a strategic business move giving the Telecom group a very
    strong New Zealand Cloud services portfolio. The acquisition of Appserv is an
    excellent complement to the purchase in 2013 of Revera and the ongoing
    investment we are making in data centres."
    
    Telecom Retail CEO Chris Quin said, "We pursued this opportunity because many
    thousands of businesses already supported by Telecom Business Hubs, and other
    channels within Telecom Retail and Gen-i, want to take advantage of the Cloud
    but need a hand to get there.
    
    "We know that the benefits of Cloud computing are still largely untapped by
    New Zealand business, particularly at the small and medium sized enterprise
    level. Cloud computing makes it easier for New Zealanders to conduct their
    business, anywhere, anytime, helping to reduce the hassle and complexity of
    IT systems.
    
    "Through Appserv, Telecom can help more New Zealand businesses fulfil their
    potential using the power of Cloud computing and IT as-a-service."
    Appserv is a growing business that has proven and market leading capability
    in providing Cloud and Desktop 'as-a-service' offerings, with customers
    across New Zealand ranging from early stage to listed companies and in
    private and government sectors.
    
    Appserv Managing Director, Graham Clarke, says "We're pleased to combine the
    leading Cloud solutions capability of Appserv with the ambition and reach of
    the Telecom Group. We're ambitious ourselves, and we see a perfect fit with
    our aspirations and how Telecom intends to transform itself to Spark and help
    more New Zealand businesses grow."
    
    Mr Moutter said, "The combined capabilities of Appserv and Revera mean we can
    now offer leading Cloud computing expertise to all New Zealand businesses,
    through Telecom and Gen-i sales channels.
    
    "Revera is a Cloud computing specialist that provides Cloud solutions
    predominantly for Government and corporates, while Appserv brings specialist
    Cloud Desktop-as-a-Service solutions for a range of business sizes,
    particularly small to medium sized.
    
    "It's a powerful combination that adds to our existing strengths in Cloud
    infrastructure, mobility, managed ICT and platform as a service. Gen-i is
    making big strides in all these areas. We have secured a number of
    significant new IT as-a-service contracts. We have added new or imminent data
    centre business totalling in excess of 250 racks since the beginning of 2014.
    Revera is continuing to grow strongly and perform well.
    
    "Our investment in data centres has continued. In Wellington, a new Revera
    centre opened last year that is now 100% allocated, with a 3rd centre due to
    open in October. In Christchurch, a new green-fields centre opened in August
    and is already over 30% full. In Auckland, a new high resiliency data centre
    in Takanini is due to open in October, with 38% of capacity already
    allocated.
    
    "We're confident that the addition of Appserv to the group portfolio gives us
    the ability to meet the needs of even more customers."
    
    The move is consistent with Telecom's growth strategy, in particular its
    priority to win the future by investing in data, mobility and Cloud services.
    
    Mr Moutter added, "As we transform to Spark, we think this puts us in an
    outstanding position to help New Zealand businesses navigate a digital future
    in which Cloud computing will become increasingly important."
    
    - ENDS -
    
    For media queries, please contact:
    Richard Llewellyn
    Head of Corporate Communications
    +64 (0) 27 523 2362
    
    For investor relations queries, please contact:
    Mark Laing
    General Manager Corporate Finance
    +64 (0) 27 227 5890
    
    Background:
    
    About the Cloud computing market in New Zealand
    o Independent research by Ovum for the MYOB Business Monitor shows that only
    16% of NZ SME's use the Cloud.
    o SME's that do use the Cloud are 16% more likely to be growing than those
    that don't.
    
    About Appserv
    o Appserv offers a complete IT infrastructure service to businesses that
    require reliability, security and flexibility.
    o Appserv's customers range from big to small across a range of industries
    including professional services, importers, healthcare, retail, government,
    manufacturing and more. This is supported by a purpose built data centre.
    o Best of breed Auckland based end-to-end Cloud services company
    o Strong word of mouth relationship and solutions based business
    o 14 years plus of consistent growth
    o The purchase price for the shares is $17 million.
    End CA:00251719 For:TEL    Type:ASSET      Time:2014-06-18 09:07:34
    				
 
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