Tokyo  - Japanese electronics company Fujitsu Ltd on Monday said it has reached an agreement with Australia's telecommunications firm Telstra Corp to acquire its information and technology subsidiary.

The Japanese firm intends to expand its business in the Australian market by acquiring all the entire of Kaz Group Pty Ltd, Fujitsu said.

Fujitsu, after expanding its loss forecast for the business year ending March 31 to 50 billion yen (515 million dollars), is refocusing its activities on computer services.

The deal, which amounts to 200 million Australian dollars (127 million US dollars), would make the Japanese firm the third-largest IT services provider by revenue in Australia.

Fujitsu is Japan's largest computer services provider. Telstra had acquired Kaz in 2004 for 333 million Australian dollars, reports said, and is now returning to its phone operating core business. (dpa)