Local broad-based black economic empowerment firm Wethu Investment Group (WIG) has made its first move into the IT space with the acquisition of Liquid Thought. The value of the deal was not disclosed.
WIG is chaired by former Johncom CEO and current Telkom Media head Connie Molusi. It is led by Cape businessman Tony de Silva.
The two-year-old company last month said it was looking to finalise "several" deals in the IT space, following a private placement of its shares with individuals.
Fluid growth
The first of these, says De Silva, is Liquid Thought, a Microsoft Gold Certified Partner focused on customer relationship management and information worker solutions. Liquid Thought has been developing its own intellectual property since 2001.
"ICT is certainly one of our strategic focus areas for investment. We have several more acquisitions in the offing, which we hope to be able to reveal soon. This particular investment offers us an opportunity to unlock the intrinsic value in the business for the benefit of all stakeholders," he explains.
Liquid Thought MD Zulfiq Isaacs says he has committed to remaining at the helm of the company and plans to lead its acquisition drive.
Targeting the middle class
Meanwhile, De Silva warns the company is not interested in providing window dressing for organisations looking to place a tick on the BEE scorecard.
"We firmly maintain that the empowerment investment community needs a new order. Our philosophy is to extend these opportunities outside of the hands of a select few into those of many. But we`re not yes men, we`re investors who want to be active and exercise our influence in those companies we put our money behind," he says.
Apart from an abhorrence for BEE fronting practices, De Silva says this philosophy is driven by the fact that funding comes from ordinary people off the street.
"We cannot afford to let this country become one of two S`s: squalor and splendour. We started off with 327 shareholders; all middle class people looking to improve their place in life. Most of these people put around R7 200 into the business at the founding; today that type of stake is valued at just short of R1 million.
"Not only is our business model solid, but its potential to impact on the economy and lives of our people is sustainable."
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