Johannesburg, 25 Apr 2005
Leading ICT companies, AST Group and Gijima Technologies, officially merged today into a new ICT powerhouse - Gijima AST Group Limited (GijimaAst). The JSE Securities Exchange trading code changes to GIJ. The company is ideally positioned for growth in the South African ICT market.
GijimaAst`s extended geographic footprint is unparalleled in the local market and provides clients with sophisticated and diverse service delivery options in the infrastructure, solutions, system integration and networking arenas.
Hailing the merger of the AST Group with Gijima Technologies as a significant coup for both organisations, CEO John Miller says this is a deal that almost has empowerment as an ancillary feature. The combined business creates a wonderful platform for client service and the growth and development of the staff complement in a market leading ICT company.
"If one looks at the competencies and vertical market focus of both companies, synergies are immediately apparent. AST has broad experience and market penetration in the manufacturing, mining, telecommunications and financial services markets, while Gijima has significant market share from providing solutions to a number of government departments, provincial governments and parastatals. This synergy alone would be a good reason for our companies to come together, especially since we have worked together successfully in the past," says Miller.
"The merger of these two strong players is the first step. With the integration process which will follow, we will make sure that we end up with a company which is truly greater than the sum of its parts," adds Robert Gumede of Gijima Technologies.
Gijima Technologies has been in operation, under the stewardship of highly experienced IT professionals Robert Gumede and Nhlanhla Mhlongo, since 1996. It is one of the most successful entirely black owned ICT companies in the country.
Gijima`s service offering is complementary to AST`s: (a) Solutions, including the delivery of projects for State Information Technology Agency, the Criminal Justice System, the Department of Home Affairs, local governments and telecommunications; and (b) Infrastructure, which includes providing support, maintenance and network services, value added resale of hardware, infrastructure roll-out and system integration in the telecommunications sector.
Gijima employs some 300 staff throughout the country and is represented through 24 regional offices, servicing clients predominantly at national, provincial and local government level, as well as parastatals.
The deal has resulted in 32% black ownership for the combined group -ahead of the target of 30% set in the draft ICT charter. In addition, Gijima has an option on AST shares currently owned by Kumba Resources, which, if exercised, would increase their shareholding to 37%.
"This deal represents a unique opportunity to move two companies forward by leveraging synergies and fully addresses the demands of the new South African economy. The result is a revitalised and highly viable business," concludes Miller.
The merged company, GijimaAst, has a large, loyal and supportive client base, long-term institutional shareholding, an enviable service track record and the best of empowerment credentials in the industry.
Three of the Gijima executives, Robert Gumede, Nhlanhla Mhlongo and Carlos Ferreira, will join the GijimaAst board effective 3 May 2005.
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