UPDATED: Telstra buys Readify

Graeme Strange - Managing Director, Readify

Telstra has bought Australian application development, consulting and managed services provider, Readify, adding to the telco's growing acquisition portfolio.

While the financial details haven't been disclosed, Readify’s capabilities include enterprise cloud applications, big data and IoT solutions.

Readify is a Microsoft channel partner that employs about 200 staff and about 160 software developers with Telstra aiming to keep all Readify staff on board including managing director, Graeme Strange.

"We consider that the most important part of the business that we are acquiring, is the people that make it a success today," the telco said.

Telstra said its latest buy will provide an additional platform to drive digital transformation for its enterprise customers in domestic and global markets, while also complements the telco's recent purchase of Kloud.

In the past three years, it has been building its technology capabilities through acquiring companies such as O2 Networks, Bridge Point Communications and NSC Group.

“Readify will provide application development and data analytics services, nicely complementing Kloud’s existing services,” Telstra executive director global enterprise and services, Michelle Bendschneider, said.

“It will enable Telstra to add incremental value to customers in enterprise cloud applications, API-based customisation and extensions as well as business technology advisory services.”

Strange said being apart of Telstra opened many opportunities and the company will retain its brand name for the foreseeable future.

"We started working out a way to partner with Telstra about 20 months ago and as I found out more about Telstra's move to really becoming a technology company, it made a lot of sense to join forces," Strange said.

In the past three years, Readify had ties with a private equity investor, Blue Sky and had a couple of tries in establishing an IPO, Strange said.

"We're spending the next 12 months looking at the best ways to leverage Telstra and some of their recent acquisitions and how we can work better together," he said.

In September, Readify acquired data analytics company, Huegin Consulting, marking its second buy-out in 12 months as it aims to become Australia’s first development, design and data powerhouse.

During the first half FY16, Telstra reported its Network Applications and Services (NAS) business revenue was up 33 per cent to $1.3 billion on the previous year. The acquisition of Pacnet contributed $35 million in revenue to the unit for the six months to December 31.

The NAS business is made up of managed network services, collaboration, Cloud, unified communications, security and SaaS.