- Telstra has sold a majority stake of its subsidiary Versent to Infosys while retaining 25%
- The sale aligns with Telstra’s Connected Future 30 strategy, focusing on core connectivity
- The acquisition deepens Infosys’ relationship with Telstra, expands its Australia market share
Australia’s largest service provider, Telstra, has sold a majority stake of 75% in its wholly-owned subsidiary, Versent Group, to Indian tech bellwether, Infosys, for $152.5 million (A$233 million) as it decides to focus on core connectivity. Telstra will, however, continue to hold a 25% stake in Versent.
Versent, which was acquired by Telstra just two years ago in 2023, to boost its enterprise services business, Telstra Purple. Earlier this year, Telstra Purple Cloud and Epicon, an IT management company acquired by Telstra in 2020, were also included into Versent.
Versent Group provides cloud services to organizations and has about 650 employees, generating about $138 million in revenue for the year ending June 2025. The transaction is likely to be completed by the end of FY26, subject to required regulatory approvals.
The deal reflects Telstra’s focus on the Connected Future 30 strategy, announced earlier this year. It centers on core connectivity and infrastructure with the aim of being “the number one choice for connectivity in Australia.” With this deal, Telstra has effectively exited from cloud services. The company believes that as adoption of new technologies, like AI, gathers pace, it will lead to an increased demand for “secure and reliable connectivity”, thus presenting a “massive opportunity” for its growth.
“Versent revenue is around $140 million and acquisition is at $152.5 million, which is just 1.1 times the revenue, making it a good deal for Infosys. Also, this acquisition enables Infosys to gain a large wallet share in Telstra. In Telstra, it is competing with Cognizant and Accenture for the share of wallet. Telstra has announced large vendor consolidation deals with Cognizant, Accenture, and Infosys over the last year,” said Pareekh Jain, CEO of Pareekh Consulting.
“For our enterprise portfolio, this means sharpening our focus on the key capabilities that deliver on the strategy and building deep partnerships that maximize the value of our networks,” said Vicki Brady, CEO of Telstra. “For customers, it means that they can continue to benefit from Telstra’s leading connectivity and the local agility and specialized engineering of Versent Group, now enhanced by the global capabilities and market insights of Infosys,” she added.
Growth in Down Under for Infosys
Infosys already has a strong relationship with Telstra and this deal will further help it to deepen its engagement while allowing it to expand its presence in Australia. Infosys announced a multi-year deal with Telstra last year, which it believes will accelerate its software engineering and IT transformation journey. As part of this deal, Infosys’ AI offerings, Infosys Topaz and cloud offerings, Infosys Cobalt, will provide an engineering backbone to help Telstra become an innovation-led enterprise.
“This is an opportunity to expand for Infosys in the Australian market with digital, cloud, and AI with Versent's current and future customers. Also, it aligns with Infosys' strategy of having JVs with its customers and have more strategic market-facing relationships. It has a JV with Panasonic in Japan,” said Jain.
“By combining Infosys’ global leadership in digital services with the strength and trust of the Telstra brand, we are uniquely positioned to deliver cloud and AI solutions that are secure, resilient, and built for the digital needs of Australia and New Zealand,” said Anand Swaminathan, EVP, Global Head of Communications, Media and Technology at Infosys in a press note.
“Expanding our trusted collaboration with Telstra, with whom we share a valued relationship, unveils a new opportunity to further accelerate the innovation agenda for enterprises across the region,” said Salil Parekh, CEO at Infosys in a press note.