The AST Group has acquired 100% of Australia`s GEM Consulting for R150.8 million cash - its biggest offshore buy yet.
The purchase is in line with an earlier statement by executive chairman Gerrie de Klerk that the group would seek to expand its presence beyond Africa and take its business model offshore.
The group has also withdrawn an earlier cautionary notice relating to a local acquisition, saying it has decided not to pursue the deal.
De Klerk says the Australian acquisition is not only an excellent investment in its own right, but "a great deal of synergy exists on both strategic and tactical levels".
This, he adds, will help the AST Group create a consulting firm with global reach and also act as a catalyst for its entry into the Australian market.
GEM Consulting, a professional services firm which specialises in management consulting and corporate advisory services, will, with AST`s Bentley West, form the basis of am international consulting firm with offices in SA and Australia.
"The next step in the globalisation of the practice will be to leverage on existing contracts in London and Los Angeles," says De Klerk.
The deal is also being touted as beneficial to AST`s e-business division, which will use its South African-gained expertise in Australia.
De Klerk says AST plans to grow aggressively in that country.
"Our objective is to build a professional Australian IT services group with a revenue-base target of A$100 million during the next 24 months, contributing substantially to the AST Group," he adds.
The group`s share price on the JSE was 4c or 1.45% higher at 280c in early morning trade.
Related stories:
AST in Australian negotiations
AST Group posts R1b turnover
Share
