Spark’s cloud arm CCL to sell network services business

New entity to be named 'Octave'

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Spark’s cloud computing and IT services subsidiary Computer Concepts Limited (CCL) will divest the operational parts of its network services division through a management buy-out by its general manager of network services, Mark Jurgeleit, who will rename the business Octave.

(There is already a New Zealand business with that name, a Wellington-based marketing agency that owns the octave.co.nz domain)

Spark said it and CCL would retain all existing contracted client relationships and CCL would engage Octave as a sub-contractor to deliver network services, and existing CCL network services customers would not experience any disruption or change.

“All existing permanent CCL network services employees will be offered the opportunity to move to Octave, which will initially continue to operate out of CCL premises.

“CCL will retain the majority of its business, which provides full spectrum cloud and ICT services with the support of over 700 employees.”

Spark said the decision to sell the network services division was consistent with CCL’s shift to a simpler operating model following its brand merger with Spark’s wholly owned cloud business, Revera, in February 2019.

CCL CEO, Andrew Allan, said: “As part of the Spark business, CCL currently has areas of overlapping investment within network services and capabilities that already exist in the Spark Group. Consequently, despite divesting this division, the breadth of CCL’s end-to-end services remains unchanged – and we will continue to offer our clients the full suite of network services.”

He said divestment would allow CCL to focus on growing its multi-cloud and ICT services.

“By selling CCL’s network services business assets to Octave, a standalone business that will still work closely with us, we will continue to benefit from a tightly integrated network business while freeing up our resources to focus on delivering Spark’s wider cloud services strategy.”

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