Telstra has acquired a 10 per cent equity stake in publicly listed Sausage Software, investing $19 million in the local e-commerce specialist.
Telstra also has options for a further 70 million shares, representing a 40 per cent stake in Sausage. The options are due to be exercised before September 9, 2001.
The deal will be ratified at an Extraordinary General Meeting in September, when Telstra has the option to appoint two directors to the Sausage board.
Telstra officials said Sausage's e-commerce development abilities were an "attractive alignment of interests" for the telco.
"Sausage Software offers Telstra established expertise in developing inventive solutions in the Internet and e-commerce space," said Telstra's group manager of convergent business, Ted Pretty.