Japan's Fujitsu Ltd. said Monday it had agreed to buy Australian telecoms giant Telstra's IT services unit for 200 million Australian dollars (127 million US).
The acquisition of KAZ Group will make Fujitsu the third largest IT company in Australia by sales, the Japanese electronics maker said.
"The acquisition is in line with Fujitsu's long-term objectives to grow its Australian business," senior vice president Richard Christou said in a statement.
Fujitsu is struggling with a global slump in demand for chips and electronic devices.
The announcement comes just days after Telstra said its chief executive Sol Trujillo was leaving the company after profits slipped.
Telstra said Monday it no longer considered the IT services business to be a core part of its strategy.
(c) 2009 AFP
Explore further: Mexico City proposes regulations for Uber