Johannesburg, 12 May 2006
UCS has bought, for about R58 million, 100% of Quadrant Consulting Group and 60% of TSS Managed Services from black economic empowerment (BEE) company Tactical Software Systems (TSS).
TSS will receive as payment 3.4 million shares in UCS Solutions Holdings, making it a 25.1% shareholder in the UCS Group subsidiary.
According to a UCS statement, TSS will continue to manage the TSS Managed Services business in terms of a three-year management agreement.
The management control, combined with TSS`s effective 55% shareholding in TSS Managed Services, means that TSS Managed Services will remain a black-owned entity in terms of the Department of Trade and Industry`s Codes of Good BEE practice.
The deal results in UCS Group, the JSE-listed entity, holding 74.9% of UCS Solutions Holdings, with TSS holding 25.1%.
UCS Solutions, in turn, owns 100% of UCS Solutions, Quadrant Consulting, and CEB Maintenance, as well as 60% of TSS Managed Services, in which TSS holds the remaining 40% direct shareholding.
The acquisition of Quadrant Consulting Group gives UCS 100% of Quartet and TSS Business Services, which provide training and SAP implementation services.
TSS Managed Services is a provider of workplace infrastructure deployment and managed services.
UCS says the acquired companies are well aligned with UCS Solutions.
UCS Solutions CEO Richard Newton says the combination of the businesses creates a strong IT services market participant with significant SAP capabilities.
Says UCS Group CEO John Bright: "Our stated BEE strategy is to implement BEE equity deals at operating subsidiary level with a particular focus on acquisitions and/or mergers that we expect will deliver synergies and mutual value-add," says UCS Group CEO John Bright.
"Our strategy is designed to address all aspects of BEE, not just equity."
The UCS share was trading unchanged at 210c this morning.
Share