Telstra expands cloud business with $60 million acquisition

Grazed from AFR. Author: David Ramli.

Telstra has continued to grow its cloud computing business through takeovers with the purchase of its Melbourne-based technology service provider O2 Networks in a deal believed to be worth around $60 million. O2 Networks designs and builds networks for a range of financial institutions across Australia with 370 customers and 100 staff. O2 worked with Telstra by providing the telco giant’s customers with services and products it did not have.

While neither party would provide any details on the value of the deal, sources close to the transaction valued it at around $60 million. It comes on the back of Telstra’s August 2013 purchase of technology service provider NSC Group for up to $100 million The deal is the latest in a series of purchases designed to bulk up Telstra’s Network Applications and Services (NAS) division, which Telstra chief executive David Thodey has repeatedly pointed to as a source of future revenue…

Telstra is aiming to sell NAS services to corporate and government customers as they move away from traditional technology systems and onto cloud computing systems to save money. It is also targeting medium and large companies as they move to Asia…

Read more from the source @ http://www.afr.com/p/business/companies/telstra_expands_cloud_business_with_770ai9xlI1IyXJSV2cj0TP