JSE-listed Business Connexion (BCX) says the Competition Commission has given the go-ahead for its R126 million buyout of Integr8 IT, through its UCS Solutions subsidiary.
BCX announced the bid last November, when it said it was buying Integr8 Group's IT unit to enhance its competitive advantage in the mid-market corporate space, expand beyond its enterprise focus, and create a complementary platform of services markets. The deal will also broaden UCS Solutions' historic retail-focused infrastructure services, it says.
Integr8 retains its other assets, which includes social payment service ZunguZ, as well as its rental and fax units, and its property portfolio. Integr8 started out in 2001 as an ICT management and managed services company.
BCX will pay the R126 million through an initial cash payment of R56 million, with the balance of R70 million payable as earn-out payments, over three years.
Expanding scope
"We're pleased with the finalisation of the acquisition of Intergr8 IT, because we already have a 28% market share of the retail IT services market share in sub-Saharan Africa," said Jane Canny, BCX's group executive for the UCS division.
"Intergr8 IT complements our growth strategy, because it provides us with access to markets not historically serviced by Business Connexion. We look forward to a fruitful relationship."
The listed company bought four UCS companies in 2011, paying R614.2 million for Accsys, CEB Maintenance Africa, Destiny Electronic Commerce, UCS Solutions and UCS Technology Services, before selling Destiny to VeriPhone, for R255 million.
"This deal makes real sense to Business Connexion and Integr8 IT, as well as our respective personnel and clients," says Robert Sussman, joint founder and joint CEO of Integr8 IT.
Integr8 IT provides annuity-based infrastructure management and managed services to mid-market corporates throughout SA and Africa. The company owns and operates the only African-based Nerve Centre, a digital hub of people, technology and processes, that regulates, monitors and maintains the technology infrastructure for many corporations.
BCX already has about 6 600 staff and acquiring Integr8 adds about another 550 personnel to the group, with 286 full-time employees and 264 regional contactors.
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