GDC sells ASP division

Former high flier now reliant on network maintenance contract with Telecom

GDC has sold iVASP, its ASP division, to Compass Communications.

The deal, which is to be settled on Friday, was announced in a notice on the New Zealand Stock Exchange, today.

Compass has nabbed the ASP business for $850,000 and the sale closely follows that of GDC’s voice services division, which was picked up by Cogent, a subsidiary of the OneSource group, for $1.3 million last month.

Late last year GDC made 27 Auckland-based staff redundant, a 25% reduction in its headcount in the region.

At the time, GDC managing director Ross Jenkins told Computerworld that changes in the voice services market, such as the arrival of IP telephony as a viable technology and the move into voice services by systems integrators contributed to the conditions that made the cuts necessary.

He also cited Telecom’s entry into that market as a factor, saying “Telecom management have changed their strategy in the [six months to December] and are now actively selling CPE [customer premises equipment] voice equipment.”

With its voice services and ASP divisions sold, GDC’s main earner is now a large-scale network maintenance contract it has with Telecom.

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