KPN has bought out IS Holding’s share in Dutch cloud company IS Group for an undisclosed fee.
The Netherlands-based operator becomes the company’s sole owner as it looks to turn around its underperforming enterprise business unit.
IS Group’s product portfolio includes shared and managed cloud computing, virtual desktop solutions and connectivity.
It had a turnover of €25 million in 2014 and employs around 130 staff.
KPN said the deal enabled it to expand its managed hosting capabilities and to complement its existing proposition with cloud-based workspace solutions for SMEs.
The operator’s enterprise business unit saw revenues fall seven percent in the first three months of the year.
KPN pinned the fall on a decreasing demand for traditional services and the fact that the total size of the business market was in decline.
The business unit saw sales decline over eight percent for the whole of 2014, although it said cloud and M2M demand was growing.
Frank van der Post, CCO of KPN: “Our business customers are increasingly asking for cloud-based services to support their growth.
“Together with IS Group we will be better able to service our customers in their transition to the cloud, with solutions that increase efficiency and flexibility, while allowing for rapid scalability.”
van der Post joined KPN in March after leaving British Airways where he was responsible for brand and customer experience.