The JSE-listed AST Group has acquired the South African Philips Business Communications Sales and Services organisation (PBC), a leading voice communications vendor.
AST`s intention is to integrate the South African Philips Business Communications Sales and Services organisation into AST Networks, under the leadership of Dr Brian Armstrong.
Factors such as the presence of Internet Protocol (IP), the growth in data networking, the advent of widespread Internet/intranet communications, the phenomena of telecommuting and home offices and e-business growth have combined to create an unprecedented opportunity for new communications infrastructures.
"Given the market developments towards converged voice and data solutions, we realise that the interests of clients will be best served by an organisation that combines strength in IT industry solutions and services with expertise in voice communications and networking," explains Pieter Bouwer, Executive Director of the AST Group.
"The AST Group`s networking capabilities and the voice communications skills of Philips Business Communications complement each other and this will have a synergistic effect on our total product and services offering in the South African market."
"PBC announced last year that it was embarking on a programme to attract strategic partners to the business," points out Ian Murdoch, CEO of Philips South Africa. "The acquisition by AST is a great strategic move for PBC`s existing clients: they will benefit from AST`s networks expertise and system integration skills in the southern African market, and have access to AST`s 62 physical service locations throughout the region."
PBC currently has 30% of the large PBX implementation user base in SA.
Worldwide AST Networks will be one of PBC`s most sophisticated indirect business channels and a leading communication system and network integrator in the market.
Ron Dikhoff, CEO of Philips Business Communications states: "This relationship perfectly matches our business model of strengthening distribution channels and forging partnerships that will offer our customers a broader pallet of solutions and services in the converged world. AST`s distinct commitment to our portfolio is clear recognition by a leading IT supplier of our SOPHO @vance portfolio being an ideal basis for integrating voice- and IT-based (e-business) applications."
PBC has, for several years, been developing its product specifically to allow migration, in an evolutionary manner, to the new IT-based communications technology. "The power of the Philips brand is an important asset," adds Dr Brian Armstrong, MD of AST Networks.
"In the face of wide choice and conflicting messages in the marketplace, consumers rely on trusted brands. So the initiative of incorporating PBC`s world-class capabilities and service with AST`s skills enables AST to offer a wide range of cutting-edge products and services to the southern African market."
The transaction is subject to the Competition Commission`s approval.
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In just three years the AST Group has established itself as one of the leading information and communication technology companies on the JSE Securities Exchange.
Its consistent creation of value for shareholders, clients and employees has resulted in a steady increase in monthly revenue to the R100 million-plus mark. AST is now the fourth largest South African IT company by market capitalisation, and is one of the top threein terms of physical infrastructure (mainframes, servers, desktops, and networks under management) and geographical footprint with over 62 physical locations.
Counting almost 90% of the top 100 JSE-listed companies among its clients, the AST Group services mostly large corporate and government clients, but is increasingly offering services to rapidly evolving small and medium enterprises.
Philips Business Communications
Philips Business Communications is a leading provider of business communications solutions to medium and large enterprises. Customers are served through a network of over 50 sales organisations, distributors, dealers and value-added resellers worldwide. Philips Business Communications is recognised as a frontrunner in the areas of networking, mobile messaging, contact centre solutions and IP Telephony.
The company`s offering is based around its series of ISPBX switches, wired and wireless peripherals, applications software and voice and data integration services, which are marketed under the SOPHO brandname.
Headquartered in Hilversum, the Netherlands, Philips Business Communications is a business unit within Royal Philips Electronics - one of the world`s biggest electronics companies. For more information: www.sopho.philips.com.