JSE-listed Reunert Group is set to merge its subsidiaries IQbusiness and +OneX into a single client-focussed business, that brings together their almost 1 500 team members.
Since July 2023, both companies have coexisted as subsidiaries in the Solutions and Systems Integration Cluster of Reunert ICT.
In a statement, the company says the intention is to merge the companies under a single brand to create a digital integrator within Reunert ICT.
It explains that the merger will combine technology services, insights, consulting, solutions, and managed services under a single business with a Level 1 B-BBEE certification.
Reunert acquired a 74.2% stake in local technology consultancy firm IQbusiness for an undisclosed amount last year.
IQbusiness was founded in South Africa in 1998, as an independent management and technology consultancy firm, by a group of individuals from global consulting firms.
In its latest financial results, Reunert’s group revenue jumped by 24% to R13.8 billion (2022: R11.1 billion).
Graeme Eddey, Reunert ICT Segment chief executive officer, says: “In recent years, digitalisation has accelerated rapidly for our local and international clients. We are responding by creating greater scale and capability to enable and unlock value for the clients that we serve.”
The intended merger is backed by the two existing CEOs, who are both excited about the new direction of Reunert ICT and who will be undertaking key roles in the new business, says the company.
Adam Craker, CEO of IQbusiness, is earmarked as the CEO while Rob Godlonton and René Bredenkamp from +OneX, are expected to assume the roles of chief commercial officer and chief financial officer respectively.
According to Reunert, to conclude the merger process, further work is underway for the integration to streamline the client and market-facing activities and to review the systems and processes.
Says Godlonton: “The merger of IQbusiness and +OneX will expand career paths for our teams and support enhanced opportunities in the global competition for talent, whilst ensuring that we deliver end-to-end technology solutions to our clients. We plan to grow our local and international presence and advance the South African business and technology services sector.”
Says Craker: “I am delighted for Rob and I to work together again. The opportunity is clear to expand our client value proposition through a combination of further diversification and penetration in South Africa and beyond. Our clients in the business and the public sector have encouraged us to become the local alternative to the international players in our home market and to extend the track record of our uncompromised brands where both local and international firms have faltered.”
According to Reunert, both IQbusiness and +OneX are growth businesses with the two existing CEOs sharing 58 years of cumulative executive experience. The intended combination is part of a shared strategy to expand skillsets and grow together to create value for all stakeholders, it adds.
Reunert’s group CEO, Alan Dickson, comments: “The continued investment into the expansion of our ICT Segment by the creation of this digital integrator is one of Reunert’s key strategic growth initiative pillars. These growth initiatives, together with our investments into Renewable Energy and Internationalisation, plus Reunert’s core businesses and positive cash generation determines Reunert’s compelling investment case.
“Our businesses deliver solid performances because of the strength of our management teams together with our technical prowess; quality products, solutions and services; market positioning and intellectual property. The merged business will bring greater synergies and complementarity to the fore, and this management team will compete effectively both locally and internationally.”
Reunert notes that the final decision on the implementation of the merger will be made in the next few months, subject to the fulfilment of certain suspensive conditions, including, among others, obtaining the respective board and shareholder approvals.
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