New Zealand Government-owned Kordia Group has sold its Australian telecommunications contracting business to infrastructure services company Ventia for an undisclosed sum.
The contracting business, Kordia Solutions Australia (KSA), operates and manages broadcast and telecommunications networks and runs out of Kordia’s Sydney offices.
The sale comes as Kordia looks to focus on its cloud, cyber security, modern workplace solutions and connectivity areas of the business, while the market conditions in the Australian telco contracting market continue to decline.
“Having conducted an in-depth assessment of our subsidiary, KSA, we found that it no longer aligns with Kordia Group’s wider business strategy, and that the capital investment required to scale up was not in the best financial interests of the group long-term,” Kordia chief executive Shaun Rendell said.
“With Ventia, a leading player in the telco space, showing an interest in purchasing KSA, we have made the decision to sell our Australian contracting business to Ventia to focus our efforts on driving further growth in other areas of our business.”
Rendell added that the decision was also made to ensure long-term profitability, and that Kordia believes Ventia is the right owner for KSA.
Kordia will continue operating in Australia through its existing cyber division,as well as the Maritime division, which works with the Australian Maritime Safety Authority and the Bureau of Meteorology.
Kordia Solutions New Zealand, which provides engineering and field services, will continue to operate in the country.
“With demand for expert technology and security support at an all-time high, Kordia Group is committed to being a 100 percent NZ-owned business that’s focused on keeping businesses connected and secure online, so they can create, innovate, flourish and thrive in what is a complex and rapidly evolving business landscape,” Randell said.
The sale is subject to standard conditions and regulatory approvals and is expected to complete later this year.
Ventia’s group CEO Dean Banks said, “Kordia’s Australian business provides a range of services which are complementary to Ventia’s existing telecommunications portfolio.”
“This acquisition further strengthens our capacity to redefine service excellence by focusing on being innovative, sustainable and client focused.”Got a news tip for our journalists? Share it with us anonymously here.
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