Future big for Britehouse

Johannesburg, 15 Oct 2007

The Britehouse Group says it is looking for acquisitions to build its scale and aid its intent to become a software giant.

The group is a spin-off of Dimension Data`s investments in the software industry. Its interests include 75% of 3fifteen, 93% of Automate, 31% of Paracon, and 75% of Pebbletree Consulting. Its aggregated revenues are around R1 billion.

Recently-appointed CEO Scott Gibson says its acquisitive strategy is already under way.

"We have already made our first acquisition outside of the DiData group. I don`t want to reveal the value, but we are buying SAP consulting house OneArch for a nice healthy sum. We are just waiting for the Competition Commission to approve the deal," he explains.

The company`s 40% shareholder, DiData, says it hopes to facilitate Britehouse`s expansion into the continent and even the Middle East.

Andile Ngcaba, DiData Africa and the Middle East chairman, and 88% shareholder in Britehouse`s BEE investor Convergence Partners, says there is much need for a strong software house on the continent.

"We are seeing the need for software in this region on a daily basis. Resource companies need to improve efficiencies, financial services organisations need to address legislative requirements, telcos are increasing scale and governments are focused on improving services to citizens. Software plays a major role in delivering on these aims," he explains.

According to Ngcaba, the infrastructure giant will try and open doors for its software subsidiary.

"We are already very active on the continent and in the Middle East. There is a good chance we can use our presence in the various regions to get Britehouse an audience. This is particularly important in the public sector where we have built up relationships of trust," he says.

Driving transformation

Although its shareholding boasts 60% of the group in black hands, Ngcaba and Gibson admit that empowerment is still a challenge.

The senior management teams of Britehouse`s subsidiaries are predominantly white. However, Ngcaba says he is confident this will change over time.

"Britehouse has a clear transformation plan, which is the same as at DiData`s. We must recognise though, that transformation is a journey. Getting to point where we are satisfied at the empowerment status is going to take some time. In the meantime, the right things are being done to get there," he explains.

Gibson adds the various companies are involved in skills development plans, which will hopefully help to address its own and the industry`s skills concerns.

"We have Saturday schools for matriculants, graduate programmes, and make use of the DiData university. Training a person to become a top-end consultant doesn`t happen overnight though."