Acquisition augments Square One IT skills, delivery capabilities

The skills and delivery capabilities of Square One Solutions Group Ltd, the IT-based business-enabling solutions provider listed on the JSE Securities Exchange, have been boosted with its R1.6 million acquisition of Latitude Information Technology, headquartered in Cape Town.

Effective from 1 June 2004, the acquisition has been paid for by the issue of 1 640 500 new Square One ordinary shares to Latitude shareholders made up of Corvest 4 (Pty) Limited, Equicap (Pty) Limited, management and employees.

"The acquisition augments and enhances our ability to deliver on our key value proposition, which is to reduce costs and increase productivity and revenues for our clients through a core suite of offerings providing optimisation, virtualisation and authentication solutions," says Square One Solutions Group executive director Craig Alexander.

"With its core business of LAN, WAN and Microsoft integration and architectural skills, Latitude is an excellent fit within our overall optimisation strategy. The addition of their Microsoft expertise will also serve to bolster our important SAFLINK biometric middleware and SANRAD IP storage offerings."

The company has silver Microsoft accreditation and has some of the top Microsoft skills in Africa on its team. High-level integration and architectural consulting skills ensure that clients derive the maximum return on investment from their Microsoft systems.

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"We'll generate added value for our customers through IP storage and WAN/LAN optimisation, underpinned by Latitude's high-end internetworking, architectural integration, platform migration and server consolidation skills and resources," says Alexander. "Their well developed, mature project and bid management processes and skills are also a valuable asset."

Alexander says the management and staff of Latitude, now renamed Square One (Pty) Limited trading as Latitude, have already been integrated into the Square One Solutions Group offices countrywide.

An interesting incentive condition on the sale is that if Square One (Pty) Limited's profit before interest and tax for the year to end December 2004 exceeds R2.5 million, Square One Solutions Group will pay an additional purchase price of R1.3 million, settled by the further issue of a maximum of 1 314 500 new Square One ordinary shares on a pro rata basis to the shareholders of the former Latitude.