Telecommunications giant Telstra has sold IT subsidiary Kaz Group to Japanese giant Fujitsu for $200 million.
The deal makes Fujitsu the third largest Australian IT company by revenue, with nearly 5000 employees across the country.
The deal appears to crystallise a large loss for Telstra, which acquired Kaz from founder Peter Kazacos in 2004 for around $333 million.
The managing director of Telstra’s enterprise and government division, David Thodey, said Telstra was selling Kaz because it no longer considered ownership of an IT services business as a core part of its strategy.
However, Telstra says it will look for work with Fujitsu in an alliance arrangement.
Fujitsu Australia and New Zealand chief executive, Rod Vawdrey, says Fujitsu is particularly keen to leverage Kaz’s strong presence in Canberra and the federal public service.
“This acquisition is all about growth and job security for a strengthened Fujitsu/Kaz business. We are financially strong and we continue to grow.
“It will ensure the retention of local expertise and will enhance our ability to present a strong local footprint in the Australian market.”
The deal is subject to regulatory approval.