Ansys buys Emerging Signals

By Leon Engelbrecht, ITWeb senior writer

Johannesburg, 29 Nov 2007

Ansys, the AltX-listed railway ICT company, has bought Emerging Signals, a Transnet Freight Rail-approved railway signalling company, for R15 million in cash and shares, payable over three years.

"Through its investment in Emerging Signals, Ansys will be in a position to offer turnkey railway signalling solutions, not only to Transnet Freight Rail and Metrorail, but also to the mining and industrial users of rail," says Ansys MD Alan Holloway.

"Furthermore, it will give Ansys annuity income from ongoing railway signalling maintenance contracts. Ansys will also increase its skills and product base in the signalling domain," he adds.

Holloway says Ansys has worked closely with Emerging Signals, and in particular, its founder Johan van de Pol, for many years, and as a result the acquisition is an excellent fit with existing Ansys business.

Emerging Signals has shown excellent growth in recent years, says Van de Pol. As part of Ansys, the business now has the management expertise and financial muscle to move to the next level.

At the time of listing the company in June, Holloway said Ansys planned to use the R30 million it raised on the AltX to fund future strategic acquisitions, and in a SENS announcement issued this week, Ansys cautioned that further deals could be expected.

Emerging Signals customers include Metrorail, and industrial concerns such as Sasol and Impala Platinum. The company also has a co-operation agreement with GE Transportation, through which it has access to the latter`s products and systems

The deal becomes effective on Saturday.