AltX-listed Alliance Data Corporation (ADC) has bought Sindele Mining Supplies for R27 million, which it is to pay through the issue of 18 million shares at R1.50 each.
Until now, ADC, whose clients are mainly in the mining sector, has focused on software development and installation, mainly in the areas of human resources, payroll, material management and time and access solutions.
"The acquisition of Sindele Mining Supplies enables us to diversify our business from a supplier of IT services to the mining industry to offering a broader range of mining services," says ADC CEO Eugene de Kok.
"Sindele has a broad client base with some of the top blue chip mines - precisely the market in which ADC operates."
The seller, Lukas van der Merwe, is to be appointed to the ADC board as an executive director and the management of Sindele, which has more than 1 100 staff, is to remain intact.
ADC expects that the combined group will generate annual turnover of about R80 million in the 2006 financial period.
ADC achieved revenue of R19.72 million for the year to 28 February 2005. The group, founded in 1997, listed on the JSE`s AltX in March last year.
Sindele`s services include contract mining and the manufacture, supply and distribution of a full-column grouting system and pumps.
The ADC share, which rose 30c or 23% to close at 160c yesterday, was untraded early this morning.
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