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Telstra to acquire Versent for $267.5m

ASX 200, ASX News, Communication Services
ASX:TLS      MCAP $45.00B
11 October 2023 10:55 (AEDT)

Source: Reuters

Telstra (ASX:TLS) has announced its intention to acquire technology consultancy, Versent, for $267.5 million in a move to expand the internet provider’s Telstra Purple tech services business.

Versent, with a team of more than 500 experts, collaborates with over 40 per cent of ASX100 companies, assisting them in evolving through cloud technology.

The cloud company boasts key partnerships with AWS, Microsoft, and leading security and data vendors. It achieved a net revenue of $130 million for FY23, representing a 17 per cent CAGR between FY20-23.

The acquisition also includes Stax, a subsidiary of Versent that provides a self-serve cloud management platform for enterprise and mid-market customers.

Telstra Group Executive David Burns said that this acquisition aligns with Telstra’s T25 growth strategy and its commitment to supporting the digital ambitions of Australia’s largest industries.

“Since launching our Telstra Purple technology services business four years ago, we’ve seen growing demand for technology solutions – particularly in cyber security and cloud-led transformation – as enterprises, governments and whole industries continue to digitise their operations,” he said.

“Through the combination of our global partnerships, breadth of our networks and technology, and strength of our deep-domain experts, we have never been better set up to deliver secure, large-scale transformation through technology.”

This acquisition builds upon previous purchases, such as Alliance Automation and Aqura Technologies, which have enhanced Telstra Purple’s capabilities to meet the end-to-end requirements of industry verticals and accelerate NAS (Network Application and Services) growth.

TLS shares were down 0.13 per cent, trading at $3.87 at 10:55 am AEDT.

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