Telstra Group (ASX:TLS) is set to takeover technology consultancy Versent in a $267.5 million deal.
The telecommunication giant, which has a market capitalisation just shy of $45 billion, says this acquisition is designed to help scale its Telstra Purple tech services business, drive network attached storage (NAS) growth, and support the digitisation of businesses and Australian industry.
Telstra reports the acquisition also includes Stax, a subsidiary of Versent that provides a self-serve cloud management platform for enterprise and mid-market customers. This tech allows customers to design, build, and run their own cloud.
The acquisition builds on previous Telstra buyouts, most recently Alliance Automation and Aqura Technologies.
The completion of the acquisition is expected to occur within the next 6 weeks but is subject to various conditions being met.
According to Telstra, Versent reported $130 million in net revenue in the 2023 financial year (FY23), which represents a ‘strong’ 17% compound annual growth rate (CAGR) between FY20-23.
Its team of more than 500 experts works with over 40% of the ASX 100 to transform businesses through cloud technology, offering both professional and managed services, as well as key partnerships with Amazon Web Services (AWS), Microsoft (NASDAQ:MSFT), and security and data vendors.
Telstra Enterprise Group Executive David Burns says the acquisition of Versent supports Telstra’s T25 growth strategy and its commitment to supporting the digital ambitions of Australia’s biggest industries.
“Versent will bring additional depth to our strong team of experts, help our enterprise customers maximise their investment in cloud-led transformations, and help us meet the growing demand for these specialised services.
“We’re excited by the growth potential this acquisition provides”
We see strong synergies between Versent and Telstra Purple in our customer base, our strategic partners, our team cultures, and the way we tackle customer problems with technology solutions. And like Telstra Purple, Versent also has an international presence, particularly in Southeast Asia, which provides significant potential to grow sales of international and Australia-out digital transformation services.
We’re excited by the growth potential this acquisition provides — it will further differentiate Telstra in the market and bolster our capabilities so that we can be the end-to-end technology partner our customers need now and in the future.”
Telstra is an Australian telecommunications provider that builds and operates networks and markets related to products and services.
Write to Adam Drought at Mining.com.au