New Zealand's Kordia has sold its Orcon residential ISP operations to a group of private investors led by Vivid Networks director Warren Hurst for an undisclosed amount.
Hurst, according to a report in Computerworld, will become a director with a 48 percent stake in the company. The remaining 52 percent piece of the company will be held by a legal nominee company.
Although he would not reveal the names of the other investors, Hurst said they include a group of smaller New Zealand investors that previously invested in other telecom companies and "and the wider ICT area in general."
Orcon is focused on providing residential services to about 56,500 subscribers in New Zealand.
Kordia began negotiations with Hurst, who is listed as a shareholder in Semple investments which registered the name Orcon Holdings Limited in February, last month.
Hurst said that they will announce a new CEO to run Orcon soon and that all of Orcon's staff will remain with the new company. Under the new structure, the Vivid Networks will be integrated into the Orcon business and the new company will take on the Orcon name.
Orcon, which was acquired by Kordia in 2007, was integrated into one common brand called Kordia New Zealand last October.
By selling off Orcon, Kordia's CEO Scott Bartlett said they will be able to "reset our strategy to better focus on delivering exceptional service to our business customers."
- Computerworld has this article
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