News : Spark Acquiring Fibre and RBI Telco TeamTalk
Auckland, New Zealand, Feb 7, 2017 -- New Zealand telecommunications provider Spark has announced that it will fully acquire small carrier TeamTalk in an effort to expand its provision of internet services across the country.
TeamTalk provides digital mobile radio services, as well as metro fibre services under its brand CityLink and rural internet services under its brand Farmside.
Under Farmside, TeamTalk a reseller of the New Zealand government's Rural Broadband Initiative (RBI), and uses satellite, ADSL, and wireless technology to provide internet connectivity in regional areas. It also has a contact centre in Timaru with over 70 staff members.
If the acquisition proceeds, TeamTalk's CityLink brand would also provide Spark with Wi-Fi service throughout Wellington, as well as fibre, dark fibre, and custom networks within six cities across the country.
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The acquisition would be closing on February 3.
According to Spark managing director Simon Moutter, TeamTalk will enable growth in revenue for Spark -- despite having declined in earnings and profit over the last few years.
"TeamTalk is a small operator in the New Zealand telco market. Its financial performance has declined over the last few years, with a number of profit downgrades, and it faces significant re-investment requirements across its businesses," Moutter said.
"Spark, as a digital services company with its own extensive networks, distribution channels, and customer base, has the ability to provide a more positive pathway forward for TeamTalk customers and staff."
Spark has requested that it complete due diligence on TeamTalk before proceeding with the acquisition.
The telecommunications provider announced a "strategic transformation" from a traditional telco towards a digital services provider last year, and made changes to its executive teams in April.
As part of transformation, its Spark Connect business was split in two to form Spark Connect, which focuses on connectivity, and Spark Platforms, which is to "design, develop, and operate best-practice digital platforms and the core products enabled by them", according to Moutter.
Posted by Veronica Silva Cusi, news correspondent
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