Pinnacle Technology Holding's purchase of Axiz for R170.9 million is set to benefit its staff members, who all own shares in the company.
Pinnacle announced the deal yesterday. It will create SA's largest channel-focused company, with annual revenue of more than R2.8 billion - Pinnacle's last reported full-year turnover.
Craig Brunsden, Axiz chief marketing officer, explains Axiz is an employee-owned company and the deal with Pinnacle will “greatly benefit its 350 staff members”. He says, as shareholders, all Axiz employees will benefit from the sale.
“It is a win-win scenario as employees will see significant capital growth on what they paid for the shares, including those that joined the scheme recently, and they also have the option to purchase shares in a listed group with the proceeds,” adds Brunsden.
Pinnacle's share closed flat yesterday at 430c, although there was quite a bit of movement during the day.
According to the announcement issued by the JSE-listed group yesterday morning, Axiz shares are held in three significant blocks. All three blocks will be bought out in the deal. The sellers include Brunsden, the Brandy Trust, David de Vos, Werner Herbst, the Shumba Investment Trust, Calyton Porter, Stefan Rabe, Patrick Reeves, the Fitzhenry Family Trust and the Axiz Employee Ownership entity.
Four years ago, when Axiz CEO Anthony Fitzhenry was named SA's IT Personality of the Year for 2006, he explained that staff ownership of shares in the company was the reason for its success. He said all staff owned shares in the firm.
“We get seduced by the old way of doing business,” Fitzhenry said. “But that way leaves people behind. There you have management owning the business, then you have staff doing the work, but only owners enjoying the gains. I can't see the fairness in that.”
Share