Telecom snaps up Computerland

Long-rumoured purchase follows acquisition of Gen-i

Telecom has bought Computerland for $26 million.

Computerland is the country's largest IT reseller. It will continue to operate under the Computerland brand for at least a year and will not be integrated into the broader Telecom Advanced Solutions–Gen-i merger, according to Computerland chief executive Chris McKay.

The nine Computerland franchises have not been purchased. Telecom has taken 100% of the holding company, Ceritas New Zealand, which was owned 80% by Singapore Computer Systems and 20% by Computerland executives. Ceritas is the master franchisor.

McKay says it’s business as usual for Computerland and that there will be no staff layoffs.

“It’s a very positive acquisition,” he says. “It reinforces the nine-month relationship we have had with TAS. We were attractive to Telecom because of our brand and market reach, and our IT infrastructure capability.”

Computerland, without the franchises, has 350 staff. In its most recent financial year, to December 2003, it posted revenues of around $100 million and a profit of $3.6 million.

The sale is expected to be concluded by the end of August.