Kordia Group is divesting its Australian contracting business, Kordia Solutions Australia (KSA), in order to accelerate its business strategy to further develop the rapidly growing cloud, cyber security, modern workplace solutions and connectivity areas of the business.
These areas have been bolstered in recent years with the strategic acquisitions of Aura Information Security in 2015, Emerging Technology Partners (now EMRGE) in 2020, Base2 in 2021, and most recently, SecOps NZ in 2021.
Group CEO, Shaun Rendell, says Kordia’s New Zealand business is experiencing solid growth, but market conditions in the Australian telco contracting market have been challenging over the past 18 months for KSA.
“Having conducted an in-depth assessment of our subsidiary, KSA, we found that it no longer aligns with Kordia Group’s wider business strategy, and that the capital investment required to scale up was not in the best financial interests of the Group long-term.
“With Ventia, a leading player in the telco space, showing an interest in purchasing KSA, we have made the decision to sell our Australian contracting business to Ventia to focus our efforts on driving further growth in other areas of our business.
“While we are incredibly proud of KSA’s contribution to the Group over the past 16 years, ultimately we have an obligation to our customers and our shareholder to ensure long-term profitability. This is a bold decision, but ultimately, we believe it’s the right decision, and that Ventia is the right owner for KSA.
“With demand for expert technology and security support at an all-time high, Kordia Group is committed to being a 100% NZ-owned business that’s focused on keeping businesses connected and secure online, so they can create, innovate, flourish and thrive in what is a complex and rapidly evolving business landscape.
“The sale impacts Kordia Solutions Australia only. Kordia’s existing Cyber division will continue to serve customers in the Australian market, as will the Maritime division which provides 24/7 network monitoring services to the Australian Maritime Safety Authority to ensure safety of life at sea and supports the Bureau of Meteorology with safety of life weather information for mariners. Kordia Solutions New Zealand, which provides expert engineering and field services support to a wide range of New Zealand businesses and wholesale customers, will also continue to operate as normal and will remain a key part of the Group,” says Rendell.
The sale is subject to standard conditions and regulatory approvals and is expected to complete in 2021.