Kordia has announced it is buying Auckland-based ISP Orcon for $24.3 million.
The deal, effective July 2, reflects Kordia shifting from being an infrastructure owner to a "more solutions-orientated company" a statement released today says.
“We’ve been operating in the telecommunications space for some years," Kordia chief executive Geoff Hunt says. "However, we wanted to more closely connect to consumers. This acquisition creates that opportunity and is a logical extension of what we do today.
"The telecommunications sector is critical to the New Zealand economy, particularly with our distance from overseas markets. We see the acquisition as a key part of what Kordia can do to be part of the transformation of the New Zealand economy."
Hunt says the move is also driven by convergence between broadcasting and telecommunications.
Orcon will continue to run as a separate entity, its new owner says, but founder Seeby Woodhouse will move into a consulting role over the next year to be replaced by Scott Bartlett who is now general manager. Kordia says there will be no redundancies as a result of the buy.