Telstra subsidiary, Kaz, has divested its interest in Fundi Software and is also thought to be considering the sale of its Australian Administration Services (AAS) superannuation business.
Fundi Software managing director, David Mierowsky, spearheaded the management buyout, which sees Fundi standing on its own again after being acquired by Kaz six years ago.
"We now have the freedom to make choices that are good for us - they may not the same choices we'd make as part of a large, listed company," he said.
He claimed Fundi had never quite fit within Kaz or Telstra. When Kaz bought the software and services business it had considered immediately spinning off the software side, he said.
It was primarily the personal interest and experience of CEO, Peter Kazacos, in software development that kept it on the Kaz books despite its lack of fit.
Meanwhile, Kaz would not be drawn on the possible AAS sale. A spokesperson said a review process was underway and no further comment would be made until late July.
The deconstruction of Kaz is a sad story, according to telecommunications analyst, Paul Budde.
"It's so sad to see the total demise of one of our key ICT companies," he said. "Kaz was doing world leading stuff but Telstra just couldn't help itself. It buys these companies and then sucks them dry like an orange."