Telstra has ended market speculation and taken a 15 per cent stake in Solution 6, worth around $50 million, flagging its intentions to take a large bite of the e-commerce pie.
The in-principle agreement is for Telstra to take about 16 million shares in Solution 6 at $3.10 a share and gives Telstra the further option to move to 25 per cent of the company within the next 12 months. Telstra is entitled to nominate two directors to Solution 6's board.
Solution 6's shares were suspended on the Australian Stock Exchange last week in response to media reports of the Telstra deal.
In addition to the equity stake, Telstra and Solution 6 will enter a strategic relationship agreement to provide joint services and integrated network solutions, portal development for the financial sector and improved efficiencies in the supply of products and services between the companies, officials said.
Solution 6's application service provider (ASP) strategy will be key to the strategic relationship, officials said.
The investment is subject to approval by Solution 6's board.
Last week, Telstra invested $19 million in e-commerce specialist Sausage Software. It also has a stake in software developer Computershare.