Telstra buys Converged Networks

Telstra has purchased Converged Networks, a WA-based voice and data network provider for less than $6 million.

Telstra Business Systems (TBS) will take over the day to day management of its former partner.

Danny Seaton, WA branch manager Converged Networks said TBS bought the company because it was a privately owned voice and data supplier in WA.

“The Telco was interested in supplying products to the enterprise and SME markets in WA,” said Seaton.

He said Telstra approached the directors of Converged Networks six-months ago to start formal negotiations. According to Seaton all staff members have been retained by TBS.

A Telstra representative said it wouldn't confirm whether or not it would axe staff. It is believed Convergence Networks currently employes 30 staff.

However managing director Phillip Zappara, has gone into semi-retirement. Although he is no longer the MD of Converged Networks, he will “assist Telstra as a consultant”.

Malcolm Flanagan managing director, TBS said the acquisition was a natural progression to bring together CPE-based voice products and services to its customers in that region.

Converged Networks has been in existence in WA since 1998 and will be re-branded to Telstra Converged Solutions within three months.