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Key points
- The Telstra share price is see-sawing despite the company building strength in the Internet of Things through 2 new acquisitions
- The telco will purchase Australia's Aqura Technologies and Brisbane-based Alliance Automation
- The acquisition of Aqura Technologies alone will cost Telstra $30 million
The Telstra Corporation Ltd (ASX: TLS) share price is wobbling today as the company boosts its Internet of Things (IoT) credentials.
The telecommunications giant's technology services leg Telstra Purple will acquire Aqura Technologies for $30 million and is also forking out to buy Australian industrial automation service provider Alliance Automation.
At the time of writing, the Telstra share price is $3.94, 0.38% lower than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) has slipped 0.21% right now.
Telstra bolsters IoT capabilities through 2 new acquisitions
Owners of Telstra shares are likely chuffed as 2 new acquisitions are set to position the company as an industry leader in the IoT space.
For those who aren't across the IoT, it's a network of physical objects each with sensors and software allowing them to communicate with other devices and systems.
In its latest push into the space, Telstra Purple will acquire Aqura Technologies from Veris Ltd (ASX: VRS).
Telstra Purple has also agreed to buy Brisbane-based independent provider of IoT industrial automation solutions and control systems Alliance Automation.
The company states its purchase of Aqura Technologies will see it able to deliver industrial-grade wireless and fixed networks in remote and underground operations.
Meanwhile, acquiring Alliance Automation will expand the company's abilities in digital transformation, industrial automation, digital twins, smart spaces, and cyber security.
Telstra Purple boss Christopher Smith said the acquisitions – Telstra Purple's 10th and 11th – are "important building blocks of our T25 strategy" and a testament to the company's growth strategy. Smith continued:
Both companies have demonstrated consistent historical growth, close customer and vendor relationships, backed up by a deep pool of specialist talent with a strong pipeline and growth outlook. We were impressed by their people, expertise and capabilities and believe they will be very valuable additions to the Telstra Purple team.
Telstra Purple's acquisition of Aqura Technologies is expected to be finalised in late February.
Telstra share price snapshot
Despite the exciting news, the Telstra share price has continued to struggle through 2022 so far.
Since the final close of last year, its stock has slumped 5.6%. Though, it's still 26% higher than it was this time last year.
