Fulcrum, UMT merge

Johannesburg, 27 Mar 2008

Enterprise project management solution provider Fulcrum Business Solutions and UMT Portfolio Management SA have merged to create new entity UMT SA.

The merger, which took effect at the beginning of the month, sees the companies amalgamate their common shareholdings.

Pieter Meyer, UMT SA CEO, explains: "Both Fulcrum and UMT are part of the Fulcrum group of companies and have a substantially common shareholding base. UMT Europe is the other shareholder in the business."

Additionally, the combination should provide clarity for clients, says Meyer.

"We share a number of common customers, and have significantly overlapping offerings. Customers were finding it confusing when engaging either Fulcrum or UMT, particularly in understanding which company offered what service and how best - and with whom - to engage. By putting the two companies together, we are able to offer the full enabling technology and training."

The merged entity expects to take advantage of the operational efficiencies that can be achieved by "eliminating duplication of infrastructure". However, it will retain the benefits of having UMT Europe as a shareholder and partner. It is unknown at this stage whether jobs will be cut as part of this merger.

Fulcrum MD Rodney Barrell says there have been no job redundancies as part of the merger process.

"We are expecting significant growth in the short- to medium-term. In fact, at the moment, we are on a serious recruitment drive; we need an additional 15 resources," he reveals.

Barrell takes the MD role at the new entity, while Meyer is CEO.