State-owned Kordia sells its managed IT services business to Australia’s Fusion5

Kordia chief executive Neil Livingstone was appointed in February after a nine-month stint as acting CEO.

Kordia, a state-owned enterprise, has sold its managed IT services division to Australian firm Fusion5.

A spokesman refused to give the sale price, citing commercial confidentiality, but said: “All managed IT staff from Kordia were offered employment at Fusion5, and a total of 26 staff have made the move from Kordia to Fusion5.”

Kordia’s 2025 annual report put its headcount at 456.

The SOE’s revenue for the year to June 30, 2025, fell 1% to $146.3 million while net profit rose from a break-even $339,000 in FY2024 to $5m.

A $2.5m dividend was paid to the Crown (the company’s shareholding ministers are Finance Minister Nicola Willis and SOE Minister Simeon Brown).

Kordia’s annual report said its maritime revenues were strong, its media revenue stable, including a renewed deal with TVNZ, but “revenues from cyber managed services were flat in a competitive market”.

Kordia, then known as Broadcast Communications Ltd (BCL), was carved out of TVNZ in 1989.

It went on to handle the bulk of New Zealand’s terrestrial upgrade to digital TV as it provided, and still provides, broadcast services for free-to-air broadcasters under the Freeview banner.

But broadcasting TV signals is a sun-setting business. A Freeview insider told the Herald the organisation is working towards a 2035 shutdown date for terrestrial transmission. By that point, it’s anticipated every household will get its TV channels delivered over the internet.

Against that backdrop, Kordia has made efforts to diversify into radio communications for marine traffic and emergency services – a market where it has sometimes co-operated and sometimes competed with private player Tait.

It also dabbled in internet services (it bought retailer Orcon from founder Seeby Woodhouse before selling it on; the ISP is now part of 2degrees).

Kordia has also diversified into cyber security services with its purchase of Aura, cloud computing services and managed IT services.

In 2021, Kordia swung to a $47m loss after an unsuccessful foray across the Tasman into network services for mining companies and telcos. The failed network contracting business, Kordia Solutions Australia, was sold to Ventia in 2022.

Repositioning continues, with moves that will lead to the Government-owned firm competing with a crush of local and multinational private contenders.

“Over the next 12 months, Kordia plans to pursue new opportunities within its core network and infrastructure business, as well as create innovative AI and cloud-driven solutions that bring together cyber security, cloud and emerging technologies,” chairwoman Sophie Haslem said as the SOE delivered its annual results on September 1.

Neil Livingston was named Kordia chief executive in February after a nine-month stint as acting CEO.

He most recently headed a 12-person start-up, Pingar, and was earlier chief operating officer for three sizeable tech firms, Vend, Endace and Provenco Cadmus.

“Managed IT customers will benefit from Fusion5’s passion for, and long-term growth ambitions in this area. Meanwhile, the sale will help strengthen Kordia’s focus and open up greater opportunities for our core businesses and customers,” Livingstone said today.

“Kordia remains fully committed to providing maritime, media, critical communications and secure connectivity to the markets we know best.

“This sale represents a significant step in our transformation and will help ensure we can keep New Zealand businesses, and their customers, connected safely – now and into the future.”

According to LinkedIn Insights, the Melbourne-based Fusion5, which offers IT “consultancy, services and solutions”, has nearly 1000 staff, including just over 400 in New Zealand.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.