Europe-based Zetes Industries has bought SA-based ProScan Group for EUR5.2 million - or about R50 million - in a move that has been hailed as “unprecedented”.
Zetes, listed on the Euronext Brussels exchange, specialises in automatic identification solutions and services for goods and people. ProScan says the buyout is the first time a listed company has entered the local data automation and mobile computing market.
ProScan MD Andrew Fosbrook says both organisations share similar histories, solutions, services, vendor partners, and visions.
“This synergy is significant as it provides ProScan with access to knowledge, capabilities and experience in software, technologies, solutions, and services that are way ahead of SA, which will assist to accelerate our expansion,” says Fosbrook.
Zetes, which has subsidiaries in 14 countries, mostly across Europe as well as in C^ote d'Ivoire, offers tracking and tracing of goods from production to the shelf, explains Fosbrook.
It also plays in the people identification space through biometric identification and electronic voting, but this area only makes up 30% of its operations, he adds.
New technology
Zetes, which is headquartered in Belgium, was established in 1984, employs about 900 staff and turns over more than EUR216 million - or R2.1 billion - a year. Fosbrook says ProScan will have access to Zetes' technologies and services, and is looking at entering the personal identification space off the back of the deal.
ProScan, which was founded in 2004, turned over EUR15 million (R146.5 million), in its last financial year and is debt-free, says Fosbrook. He says the local market is estimated to be worth more than R750 million, although there are no official statistics. “It's a massive growth area.”
Alain Wirtz, Zetes CEO, says ProScan will aid it to establish a strong presence in Africa, which is regarded as the next growth point for multinationals requiring the same support and service experienced in Europe.
Fosbrook explains South African companies exporting into Europe need to comply with stringent regulations around the traceability of goods. In addition, as more global retailers - such as Walmart - enter SA, they will demand the same solutions as those available in developed countries.
Zetes needed a local foothold to expand into Africa and extend its reach to current clients that are moving into the continent, notes Fosbrook. He says the global company has not yet taken advantage of goods tracing in Africa as it has been focused on personal identity solutions.
ProScan has three divisions: ProScan Mobility, ProScan Media and iData Distribution.
Fosbrook says ProScan will rebrand to Zetes - ProScan, but iData will retain its name and continue trading independently because of its reseller focus.
The deal comes into effect on 1 July.
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