Australian finance group FlexiGroup will become New Zealand's biggest IT leasing company, after acquiring market leader Telecom Rentals.
The company behind interest-free products at Australian retailers is doubling its tech leasing presence in the New Zealand market by snapping up Telecom Rentals from Spark New Zealand for $NZ106 million ($A102.34 million).
FlexiGroup chief executive Tarek Robbiati said the acquisition of New Zealand's largest tech leasing firm would create an even bigger market leader, but added it would be another six to 12 months before it considered another transaction across the Tasman.
"Probably not for the foreseeable future because a lot of our energy and focus will be dedicated to bringing these two businesses together - it's not an easy thing to do," he told AAP.
The deal comes a year after FlexiGroup made its first New Zealand acquisition, buying technology leasing group Equico for a small, undisclosed sum.
Telecom Rentals was set up in 2006 as a subsidiary of Spark New Zealand and leases IT and telecommunications equipment to 1,350 corporate and government clients.
It has leased laptops to New Zealand schools since 2012 but its contract with the Ministry of Education expires in early 2016.
Mr Robbiati was confident the New Zealand government would renew this contract which comprises a "sizeable portion of the business".
Telecom Rentals will be absorbed into FlexiGroup's New Zealand Leasing division.
Spark New Zealand, which was previously known as Telecom Corporation, continues to own New Zealand's telephone infrastructure.
In February, FlexiGroup said it had no plans to buy GE Money's Australia and New Zealand consumer lending business.
IG markets strategist Evan Lucas said Telecom Rentals had good underlying earnings potential.
FlexiGroup shares had risen 17 cents, or 4.86 per cent, to $3.67 by 1349 AEDT.
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