Local Getronics subsidiary Getronics SA has been acquired by CS Holdings (CSH) for R43 million. CSH claims the deal makes it one of the biggest suppliers of IT networking and infrastructure support services in SA.
[VIDEO]According to CSH, the acquisition will add R185 million to its revenue for the financial year ending 30 June 2002, and approximately 75% of that added revenue is annuity-based. The deal also includes a strategic alliance agreement with Getronics worldwide.
"This acquisition and partnership is of great strategic importance to CSH," says CSH CEO Annette van der Laan. "It gives us the international backing to render a more comprehensive and progressive service to our international clients, as well as our clients with operations in Africa."
Van der Laan adds: "As a condition of the acquisition agreement, Getronics NV and CSH will enter into a strategic alliance and service partnership agreement whereby international clients of Getronics SA will continue to be supported and serviced by Getronics NV, and similarly, CSH will continue to support international clients of Getronics NV in SA."
According to Johann Kunz, MD of CS ITS (a division of CS Holdings), Getronics SA`s net asset value is R24 million, and the deal included an R18 million goodwill amount. The local subsidiary of ex-Wang Global is represented in all major regions in SA through an infrastructure of 38 branches and currently employs over 500 staff members.
The wholly-owned Getronics subsidiary in this country has operated for more than 40 years under former international groupings, including Wang Global, and was acquired by the Dutch-based Getronics group during 1999. Customers include Shell, CNA, and various financial institutions, while partners range from Cisco to Dell to Microsoft.
The future position of Charles Proudfoot, current MD of Getronics SA, remains uncertain at this point. The acquisition is subject to the approval for and subsequent listing of the new shares by the JSE, the approval by the Competition Commission and other regulatory authorities.
Share
