HP Buys New Zealand Services Firm
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HP's New Zealand unit agreed to acquire the assets of privately owned CGNZ Ltd. in a bid to solidify its position as the premier IT service provider in New Zealand.
Financial terms of the deal were not made public.
CGNZ helps corporate customers with the strategy, implementation and support of technology services, including architecture, business intelligence, mobility and software development.
HP said in a statement the deal would essentially give the unit premium business consulting talent to boost HP's service offering in a country where the Palo Alto, Calif., systems vendor is not as strong as it could be.
CGNZ also brings a well-regarded enterprise resource planning practice to the table for HP, along with prowess in sectors such as energy and utilities, health, manufacturing and government.
"CGNZ's business consulting services offer a complementary set of skills to round out our service offering," said Keith Watson, managing director, HP New Zealand, in a statement.
The deal is expected to close within one month, whereupon CGNZ and its staff of 180 will be tucked into HP services' consulting and integration unit.
New Zealand might not be a traditional fount of high-tech business. But HP has increasingly shown an interest in expanding its sphere of influence all over the globe to bulk up its already massive services unit. This has been particularly true with regard to the systems vendor's services and consulting business.
In May 2004, the company purchased Dallas-based ManageOne and U.K.-based CEC Europe Service Management to improve its information technology service management (ITSM) portfolio.
Deals like this align with CEO Mark Hurd's mission to "sell more" and improve the way the company goes to market. Hurd made this case at a meeting with HP investors in New York Wednesday, where he showed his comfort level with HP's sprawling business.
Separately, BT and HP today announced a five-year European IT and networking services contract with Hertz Europe Ltd.
BT and HP will supply Hertz with IT and networking services, including Internet-based virtual private networks that utilize DSL to connect Hertz's corporate headquarters to more than 1,100 car rental sites across Europe. BT and HP will also support more than 5,000 desktop devices, 3,000 printers and 148 servers for the rental agency.