Company85 snapped up by Australian comms firm Telstra

Deal will see Telstra use the UK as a base to expand further into Europe

London-based service provider Company85 has been acquired by Australian comms giant Telstra.

The deal will see Telstra use Company85 as a springboard to expand further into Europe, according to executive director Christopher Smith.

"Company85's offering is strongly aligned to the existing suite of technology consulting services we offer our Australian customers, and is consistent with the strategic investments we have made in Australia," Smith said.

"Importantly, it aligns with our strategy to grow our services business in regions that are key hubs for multinational corporations.

"We see the UK as a key market for our growing technology services business and a strong platform to expand into Europe."

Company85 has itself seen made acquisitions over recent years, snapping up network security firm DVS Channel Services in 2015 and Microsoft player XOR in 2013.

The consultancy was formed in 2010, after a management buyout took the firm out of Symantec ownership. Its roots can be traced back to the 1990s when it operated as Company-i.

In its most recent accounts on Companies House, Company85 reported a revenue of £7.2m for the year ending 30 September 2015.

The firm made a loss of £46,238 after tax, compared to a profit of £143,203 in the previous year.

Adrian Spink, CEO at Company85, said: "Being part of Telstra we see a tremendous opportunity to reach new customers and accelerate our international expansion.

Headquartered in Melbourne, Telstra is listed on the Australian Stock Exchange and in its last financial results reported a revenue of A$12.8m (£7.4m) for the six months ending 31 December 2016.

Terms of the deal were not disclosed.