Home Industry Deals Telstra acquires O2 Networks for $60 million

Telstra acquires O2 Networks for $60 million Featured

Telstra has pulled out its wallet to acquire Melbourne-based cloud company O2 Networks, in a deal worth an estimated $60 million.

O2 Networks, which says it boasts around 370 customers and 100 staff, designs and builds networks for a range of financial institutions across Australia.

The company's managing director Euan Prentice said O2 and Telstra enjoyed a long-standing relationship and the combination of O2 and Telstra was logical for both companies.

“We have a long history of working with Telstra and we know that O2 will be an excellent fit. We also look forward to enabling our people to broaden their career opportunities within Telstra,” Prentice said in a statement.

Telstra’s Network Applications and Services (NAS) Executive Director Michelle Bendschneider said the acquisition would contribute to Telstra’s strategy of expanding its network services.

“As our customers shift towards cloud-based environments, they increasingly require capabilities to securely integrate networks, data centres and cloud-based applications,” Bendschneider said.

“O2 significantly enhances this capability within Telstra’s NAS portfolio and this acquisition is consistent with our strategy of providing advanced network-based services that are highly valued by our customers.

“O2 have a reputation for deep-domain expertise and speed to market with emerging technologies including wireless network integration and next generation security threat detection and mitigation solutions. We value O2’s consulting-led approach to engaging with customers, ensuring the right solutions are developed rather than just focusing on the underlying technologies that are delivered.

“Following our recent acquisition of NSC Group, we continue to invest in capabilities that improve the efficiency of our customers’ businesses and enhance the way they serve their own customers,” Bendschneider said.

The deal, along with the NSC acquisition, is the latest in a series of purchases adding to Telstra’s NAS portfolio which should be a strong source of revenue for the company in the future.

Neither party would provide any details on the value of the deal, but sources close to the transaction valued it at around $60 million.

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David Swan

David Swan is a tech journalist from Melbourne and is iTWire's Associate Editor. Having started off as a games reviewer at the age of 14, he now has a degree in Journalism from RMIT (with Honours) and owns basically every gadget under the sun.

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