Telecom has entered into an agreement to purchase all shares of Auckland-based cloud services provider Appserv.
According to the company, the agreement is subject to conditions which are expected to be completed in early July.
Telecom CEO Simon Moutter said that the acquisition of Appserv 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."
He added that the Appserv acquisition places Telecom in a good position to help NZ businesses move to cloud computing, as the firm prepares to change its name to Spark in August this year.
Appserv provides SaaS, desktop-as-a-service (DaaS) and IT-as-a-service offerings, with customers across New Zealand.
Appserv MD Graham Clarke, said "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."
Moutter said, "Revera is a Cloud computing specialist that provides Cloud solutions predominantly for government and corporates, while Appserv brings specialist Cloud DaaS 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.
"We're confident that the addition of Appserv to the group portfolio gives us the ability to meet the needs of even more customers," said Moutter.
According to Moutter, Gen-i and Revera continues to grow with new or imminent data centre business totalling more than 250 racks since the start of 2014.
"Our investment in data centres has continued. In Wellington, a new Revera centre opened last year that is now 100 per cent allocated, with a third centre due to open in October. In Christchurch, a new green-fields centre opened in August and is already over 30 per cent full. In Auckland, a new high resiliency data centre in Takanini is due to open in October, with 38 per cent of capacity already allocated," said Moutter.
Sign up for CIO Asia eNewsletters.