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BEE merger 'creates MS services giant`

By Warwick Ashford, ITWeb London correspondent
Johannesburg, 28 Apr 2004

With the official rebranding of Comparex Africa to the name of its new black economic empowerment (BEE) partner, Business Connexion, the new entity`s management is adamant the merger makes good business sense, combining the complementary skills of two successful companies.

Peter Watt, Business Connexion CEO, says there is much excitement about the future of Business Connexion. "We have made an incredible business match and stakeholder buy-in has been phenomenal. Business Connexion will serve as the industry benchmark for real and sustainable transformation."

Watt says a good example of the complementary nature of the merger is the combination of the original Business Connexion`s Microsoft skills with the implementation and support services of Comparex`s business applications division.

"The Microsoft competencies acquired through the partnership have opened up new opportunities to extend the former services offering of Comparex."

John Lagaay, business applications group executive, agrees, saying his division will be able to significantly extend its offering in the Microsoft space with regard to business intelligence, enterprise resource planning, knowledge management and customer relationship offerings.

"Independent of the need for a BEE partner, in the normal course of business, a partnership with Business Connexion would have been attractive because of its strength in the Microsoft skills that were lacking in Comparex."

Lagaay says the merger with Business Connexion was not merely a BEE deal, but one that made business sense because of the complementary business strengths and the synergy between the core competencies of both companies.

"The growth of business applications is expected to be in applications based on the Microsoft platform, therefore it is complementary to have a focus on Microsoft with direct access to Microsoft, enabling contingency planning and business alignment based on insights into Microsoft`s offerings and strategies."

The importance of a Microsoft competency is emphasised by Isaac Mophatlane, public sector group executive: "Despite government support for open source systems, there is a lot of investment in Microsoft and it will take some time before that changes." He points out that the GautengOnline project, for example, is Microsoft-based.

"The new combined total of Business Connexion`s Microsoft capability is unlikely to be matched by any other company," affirms Lagaay. "The result of the partnership is an extremely comprehensive Microsoft offering, creating the opportunity of providing one-stop service to former Comparex clients who previously bought Microsoft products from competitors."

Apart from filling the Microsoft skills gap in his division to tap into the pervasive Microsoft market, Lagaay says Business Connexion has also brought customers as well as an array of methodologies, best practices and standards used in the delivery of products and services.

"All offerings within the new Business Connexion have been able to benefit from these methodologies, but the relationship has been reciprocal, with Comparex`s experience being able to further enhance the old Business Connexion`s offerings," says Lagaay. "We have learned from each other."

Referring to the rebranding of Comparex Africa, Benjamin Mophatlane, Business Connexion deputy CEO, says today is a good day to begin a new life under the Business Connexion brand.

"Yesterday we celebrated 10 years of democratic freedom. Today, we launch a brand that represents a truly South African ICT company, which mirrors the ideals of our country."

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