ADvTECH has acquired Resource Development International (RDI) for R9.5 million and RDI has in turn wholly acquired Bryan Hattingh Independent Services (BHIS), also part of the ADvTECH group.
BHIS was set up in 1994 by RDI and IBM SA, and has been managed by RDI since inception. The business will now trade as BHIS and will be the preferred supplier to IBM SA.
BHIS has a base of more than 300 professional contractors. As part of the deal, RDI acquires and will manage and contract out the services of these contractors. Most of these practitioners are currently contracted to IBM SA, the Department of Water Affairs, South African Revenue Services, Foschini, Sanlam and various other organisations across a number of industries.
BHIS director Michele Hattingh expects the contracting market to grow significantly next year, in line with industry trends towards outsourcing, the skills drain and the rapidly changing nature of business.
RDI intends to grow and expand the business, locally and globally. "In addition, we have ambitious plans for improving the value proposition to our contractors, including intensive training, skills transfer and enhancement," says Hattingh.
The transaction is effective 1 October, dependent on regulatory approval, and will be settled in cash by no later than 31 January 2000. ADvTECH does not expect the deal to have any material impact on earnings for the year ending December 1999.
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