JSE-listed technology company Allied Technologies (Altech) has bought Cape-based Swist Technology Solutions (Swisttech) for R52 million.
Altech says it will pay R30 million upfront and the balance over three years, based on certain agreed targets that Swisttech needs to achieve over that time. Swisttech was a sister company to popular social media group MXit when both companies were housed in Swist Group.
Swisttech is an independent software vendor, which focuses on infrastructure and integration services, mobility services and software development. It is also a “major” billing software vendor in the local market, says Altech.
The listed company explains Swisttech has “significant” synergies with other Altech operations, especially with Altech ISIS.
Altech ISIS, a South African-based telecoms solutions provider and systems integrator, is a division of Altech Information Technologies, a subsidiary of the Altech group. The unit was established in 1984 and its solutions support more than 60 million subscribers.
Altech CEO Craig Venter says the deal “enhances our ability to move up the value chain by providing end-to-end solutions, particularly into the financial services and telecoms industries”.
Venter adds Swisttech will also enhance Altech's earning profile. Altech warned on Friday that its full-year earnings to February were likely to be flat compared with the previous year, which could derail a 10-year record.
Swisttech will also enable Altech to offer a turnkey billing solution, which is attractive to network operators, notes Venter. Swisttech's core focus includes delivering infrastructure services, integration services, and developing applications, products and solutions.
Altech will keep existing Swisttech management and staff and has entered into four-year contracts with the company's CEO, Yanesh Ramiah, and key staff. Altech had cash-on-hand of R318 million at the half-year to August.
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