After a R10 million cash injection from UK-based Integrity Software, JSE-listed Planit Technology Holdings is considering a couple of strategic acquisitions and is set to amalgamate key Insys divisions.
Dale Packham, CEO of Planit, says now that remaining debt has been taken care of with the cash injection from Integrity as well as a further R9 million from an institutional investor, his company is eyeing well-placed strategic acquisitions.
In line with this, Brian Packham, former Insys Business Solutions MD, has come on board as an executive director and will head up the IT synergies for Planit.
Brian Packham will be responsible for the integration of some Insys products under the name of Planit Business Solutions.
Insys closed its doors a month ago after it was unable to sustain profitability. Subsequently, MetaLogix took over servicing Insys` SalesLogix (eCRM solutions) clients on approval from SalesLogix`s international parent company Interact Commerce.
Planit will integrate Acuity - Sage Software`s enterprise resource planning (ERP) solution for which Insys was the sole local distributor - into its offerings.
"Planit is going to create a business solution division that will use customer relationship management, ERP and business intelligence. This will supplement the e-business solutions that we currently offer and in which we consider ourselves to be market leaders," says Dale Packham.
"The rationale in starting up this division is that many of Planit`s clients are looking for a total integrated and cost-effective e-business solution that would include back-office and front-office applications.
"Planit will also look at adding ASP [application service provision] due to our large in-house server and infrastructure capacity. Planit currently possesses the second largest server capacity in the Southern Hemisphere."
Dale Packham says Planit will use the Insys products subject to an equitable deal being structured with the vendors of these products, as well as the suitability of these products to Planit`s existing technologies.
Looking forward, he says the new cash injection from the Integrity deal will be used with extreme prudence.
"We are going to be the most stingy company on the JSE. We are grateful for the second chance we got from investors, but we know we won`t get a third chance," he says.
Planit reported a R163 million loss for its last financial year, but Dale Packham says he expects to have the company back in the black by the next financial year-end. He is confident investors will respond favourably to the annuity-based income which Planit will be extending.
"The really great thing is that any acquisitions will be wholly strategic. We plan to grow organically and will certainly not just be looking at buying revenue."
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