FIRB approval seals Fujitsu's Kaz acquisition

Peter Dinham
Sunday, 03 May 2009 10:42

IT Industry - Strategy

Fujitsu’s acquisition of Telstra’s troubled Kaz group has finally been sealed with the Foreign Investment and Review Board(FIRB) approval of the deal.

The acquisition of Kaz for $200 million by Fujitsu was announced in March this year when Fujitsu said the purchase would boost its position in the Australian and New Zealand market to the third largest ICT company, with a staff of 5,000.

The deal with Fujitsu follows the sale by Telstra in August 2006 of KAZ’s superannuation business, Australian Administration Services, for $215 million.

Rod Vawdrey, CEO Fujitsu Australia and New Zealand, said the acquisition of Kaz marked “another successful milestone as Fujitsu continues its corporate growth strategy to continually improve and enhance end-to-end capabilities.”

“The strength of KAZ’s existing business expands Fujitsu’s capabilities to a new level in the Australian market creating better value for existing and future customers. The deal also creates a strategic alliance between Fujitsu and Telstra that builds on the existing working relationship and provides new opportunities for both organisations.”

Vawdrey said the acquisition was all about growth and job security for a “strengthened Fujitsu business in our local market,” adding that the merger would ensure retention of local expertise and would “enhance our ability to present a strong local footprint in the Australian market.”

According to Vawdrey, Fujitsu’s strong track-record working with Australian governments, particularly at the state level, meant that the acquisition of KAZ gave the company “enhanced service capabilities for federal public sector opportunities and a strong physical presence in Canberra.”