Spark sells rentals business for $106m

Spark New Zealand has announced it is selling its Telecom Rentals business for $106 million.

The rentals service is a wholly owned subsidiary of Spark, that provided the lease of ICT and telecommunications equipment to businesses, schools and government agencies.

The service, which brought in around $5 million in earnings before interest and tax, has been conditionally sold to FlexiGroup Limited.

Spark spokesman Richard Llewellyn said the sale was part of the company's long-term strategy.

"[The rental division] was a non-core part of the business and we are trying to focus on the digital service side now," Llewellyn said.

"There are a couple of smaller divestments that have already occurred as part of Spark digital or the old Gen-i portfolio and then the big one was AAPT which was very much refocusing on the New Zealand market."

Llewellyn said the rental division had fewer than ten staff, who would all transition over to FlexiGroup.

The sale is expected to be completed by April 30 this year.