Velocity Group will not be implementing any major changes - such as retrenchments - to MLC Solutions following a majority stake acquisition which is effective as of today.
This is word from Velocity CEO Jonathan Kropf, who says the stake - that is in excess of 75% - will not lead to any dramatic employment changes, "We bought into the business for the quality of staff and therefore no retrenchments will be taking place. The transaction also adhered to standard acquisition terms which included continued involvement of management as well timing of the transaction prior to being approved. We will, however, look to consolidate offices in the short term and we will also be investing in systems to provide scale capabilities and to enhance customer service with immediate effect."
The local ICT reseller and systems integrator bought into the Gauteng-based firm that specialises in, amongst others, installing and supporting the full range of Microsoft solutions, including Microsoft Azure and Office 365, the vendors popular cloud offerings. The company is also knowledgeable in enterprise hardware installation and support, networking, as well as desktop managed services in various sectors including mining, engineering and construction.
The new consolidated entity will trade as Velocity | MLC.
Kropf says the acquisition is in line with their strategy to enable and help customers build their hybrid cloud strategies and environments. "The acquisition will add significant services revenue to the group and is in line with our stated goal to derive half of our group earnings from services within the next three years. The technical skills that MLC brings to the table are second to none."
Murray Lloyd, divisional manager of services at MLC, adds that the company is keen on adding a new range of services to their industrial clients, "The mining, engineering and construction sectors are under immense pressure and are actively looking for ways to make their businesses more efficient, as well as derive the most out of their IT assets. Through the support of Velocity, we will be able to add a new range of services as well as tap into the skills of the company to help meet our client's business goals."
The companies hope to expand the combined services to areas beyond Gauteng's borders including Durban and Cape Town.
Meanwhile, Kropf confirms that Velocity is on the lookout for more acquisition opportunities, but for now, the focus is on MLC, "This acquisition is of utmost importance to our strategy and we need to conclude implementation prior to pursuing others. There are however more deals in the pipeline that support our strategy of building a hybrid cloud enablement business. We also have specific targets in the connectivity and cyber security area that we are exploring, which we are hoping to finalise an acquisition in the first half of next year."
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