JSE-listed Altron has set up a new division, the Altron TMT (telecommunications, multi-media and IT) division, which will be created following the operative date of the acquisition of the minority shares in Altech.
The company today announced that its offer to acquire the said shares in Altech was approved by the Altech minority shareholders following a general meeting. Altron will, following the operative date, own 100% of Altech along with its other two 100% owned subsidiaries IT giant, Bytes Technology Group and power electronics group, Powertech.
The Altron TMT division will comprise of both the Altech and Bytes businesses, although Altron notes that these two businesses will still exist as separate entities.
Altron CEO Robert Venter says: "As a result of increasing convergence between the IT and telecoms sectors, we were starting to see opportunities for Altech and Bytes to work closer together."
Following Altron's acquisition of Altech, says Venter, it is now possible for the company to maximise synergies and eliminate overlap between the Altech and Bytes groups by bringing them together in the Altron TMT division.
"It has become necessary to streamline the operations. We see opportunities for both revenue enhancement as well as cost efficiencies in the new structure. This will include the combination of the head offices of Bytes and Altech in the recently established Altech head office in Woodmead."
Management mix
The Altron TMT division will be led by Craig Venter, who has been appointed to the position of Altron Group executive: TMT. He will hold strategic and operating responsibilies to maximise the synergies between the Altech and Bytes businesses and will continue to fulfill his existing role as Altech CEO.
Rob Abraham, currently CEO of Bytes, will remain in that position and report to Craig Venter. Abraham will remain a member of the Altron executive committee and Altron's board. Peter Riskowitz, currently CFO of Bytes, will assume the role of Altron TMT: CFO reporting to Craig Venter.
Craig Venter says there are "compelling reasons" for Altech and Bytes to join forces.
"Bringing Altech and Bytes together will create the largest converged solutions group on the African continent. In addition, the companies are both leading players in the markets in which they operate."
In addition to the Altron TMT appointments, Willie Oosthuysen, previously chief technology and chief strategic officer at Altech, has been appointed as Altron group executive of technology and strategy. Oosthuysen will report to Robert Venter and join the Altron executive committee.
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