Telstra acquires Sydney's VMtech

Sydney's VMtech has become the latest IT specialist to be snapped up by Telstra, as the telco looks to step up its game in the delivery of hybrid cloud and security solutions.

The transaction, for an undisclosed sum, will see Telstra boost its network applications and services business, both locally and globally.

“Customers are looking to us to provide hybrid solutions for their network, security and cloud infrastructure, as well as support with defining, architecting, implementing and managing these solutions,” said Christopher Smith, Telstra business technology services executive director.

Smith said VMtech’s set of services around secure hybrid cloud would complement Telstra’s own offerings across public cloud applications, networking and security solutions, strengthened through the telco’s acquisition of Kloud Solutions in early 2016 and Readify six months later.

Telstra said it was looking to retain all 75 current VMtech staff, with a spokesperson saying: “The VMtech executive team and broader employee base have demonstrated their capability to build a growing business with innovative capability, high levels of customer satisfaction and a strong reputation. We want to continue this trajectory and accelerate their growth.”

Telstra has experienced varied success among its slew of acquisitions over the past decade. Along with Kloud and Readify, the telco acquired systems integrators Bridge Point, based in Brisbane, Sydney-based NSC Group and Melbourne's O2 Networks between 2013 and 2015. Prior to that Telstra famously sold off it's Kaz acquisition to Fujitsu for $200 million in 2009, it paid $333 million for the company five years prior and struggled to earn a return.

VMtech was established in 2009 and has achieved work across business and government, including contracts with Coca-Cola, Komatsu, ME Bank, Missions Australia and Sydney’s Inner West Council.

“We have partnered with Telstra since 2013 to deliver our innovative solutions to customers in New South Wales and Victoria. Our values and commitment to delivering best-fit customer solutions are strongly aligned,” VMtech chief executive Len Findlay said.

“We’re excited to be joining Telstra and helping to take our secure hybrid cloud capabilities, combined with Telstra’s leading network and security services, to a broader market – both domestic and international.”