Bytes still on the prowl

By Christelle du Toit for Bytes Technology Group
Johannesburg, 08 Jul 2008

The Bytes Technology Group remains on the lookout for merger and acquisition (M&A) opportunities.

This is according to Peter Riskowitz, group financial director, speaking on the eve of the group's multimillion-rand merger with NOR Stationery Wholesalers and NOR Paper appearing before the Competition Tribunal tomorrow.

The Competition Commission has unconditionally approved the buy. According to Riskowitz, the deal is worth about R160 million, including earn-out over the next year.

Riskowitz says this merger is intended as a value-add to the company's existing Xerox business, and he does not foresee much difficulty from the tribunal.

He adds that Bytes is still "looking to see what is available at reasonable prices" as far as M&A activities are concerned. "We are always looking out for suitable acquisitions."

He notes that it is no secret Bytes has long been interested in Business Connexion and is keenly looking forward to that company's next results presentation.

According to Riskowitz, current market conditions will mean more consolidation, from which Bytes will look to benefit.

The NOR deal is one of two major acquisitions to come after the company's 2008 financial year, the other being that of contact centre business Intelleca Voice and Mobile for R120 million.

Between the two acquisitions, Bytes aims to add about R400 million to its annual revenue.

NOR was established in 1974 in Cape Town as a supplier of printing machines and office automation products.

The focus gradually shifted to supplying a wider range of paper products. With sanctions lifted post-1994, the company embarked on a limited foreign paper range, which has subsequently been expanded. The company opened a Johannesburg office in 2005.