IT retailer Connection Group is to acquire 16 FotoFirst, Fotostaa and Audiolens outlets from New Teltron for R32 million cash.
"The 16 stores being acquired are situated in major urban centres," says Connection Group CEO Grattan Kirk. "They give the Connection Group immediate entry into the retail photographic and film processing and printing market through a chain of stores operated on a similar business model, with common customer profiles and complementary store locations."
He says the acquisition will allow the group to provide its customers with a completely integrated IT/digital photographic retail offering.
"Internationally, the consumer electronics, photographic and personal computing markets are converging rapidly, driven by advances in technology and affordability of digital photography.
"In fact, all major hardware and software developers now provide photographic applications as part of their product offering."
The stores will be rebranded since there are about 250 other FotoFirst stores in SA, which are not part of the acquisition.
Connection says it will acquire all the fixed assets and business of the 16 stores. A stock count will take place at the end of February and the group will have the option to acquire certain stock items.
The total book value of the fixed assets being acquired ins R18.9 million. The 16 outlets produced net income of R9.9 million before tax for the 15 months to 31 August last year.
The Connection Group share rose by 10c to trade at 560c on the JSE this morning.
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