Faritec Holdings is acquiring the business of technology infrastructure solutions provider Enterprise Connection.
Faritec issued a brief cautionary notice on the JSE`s announcement service, SENS, late this morning, saying that "Faritec has reached consensus on the basis on which it will acquire the business of Enterprise Connection as a going concern".
It adds that the deal is subject to the conclusion of a formal binding agreement and all necessary regulatory approval.
Enterprise Connection is 50.1% owned by private equity firm Canal Square, which bought its shareholding from Connection Group in the first half of 2003. That followed Connection Group`s decision to exit IT and focus exclusively on its retail operations.
The balance is held by management.
The parties are not commenting on the transaction, as they say they are barred from disclosing any additional details of the deal, in terms of JSE regulations governing cautionary notices.
The acquisition is in line with a statement by Faritec CEO Simon Tomlinson in September, when he said the company planned to launch new operations and acquire existing businesses as part of its growth strategy for the next few years.
The deal is a sizeable one for Faritec. It is understood that Enterprise Connection, with a staff complement of about 200, has a turnover of more than R300 million. Faritec achieved revenue of R434.21 million for its latest financial year to June.
The Faritec share was trading unchanged at 54c on the JSE early this afternoon.
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