Atec buys SA Tech

By Siyabonga Africa, ITWeb junior journalist

Johannesburg, 03 Sept 2008

Cape Town-based IT service and infrastructure provider Atec Systems and Technologies has bought a 65% stake in SA Technologies (Satec).

Atec hopes to use Satec's expertise in fibre optic cables and CAT 5 network installation to expand its client base in the property development space.

"As Atec doesn't utilise wireless networks and tries to install fibre as a first choice technology, it really benefits the Atec client to have in-house skills as opposed to a sub-contractor performing work," says Atec CEO Gerhard Loots.

Loots explains that Satec will enhance Atec's product range, which includes the e-State, e-Home and e-Secure solutions. These products are used to technologically enable properties of all sizes, with e-State being the flagship solution.

The e-State product is a combination of services, from telephony to video-on-demand, delivered through a carrier. Loots says the quality of the carrier (and subsequently the installer) affects the services and it was important for Atec to have a subcontractor whom it can rely on to deliver the desired standards.

Satec spokesman Francois Geyser says the acquisition is of benefit to both companies. "We confidently believe this joining of expertise, proficiency, skill and experience will take us to the very top of all network installation service providers."

Atec has provided IT services to gated communities for the past four years and has live sites in the Western Cape and Gauteng. Loots adds it is installing IT infrastructure at a 600-unit development in Umhlanga, with another 1 000 units to be connected at other sites before the end of the year.

Last month, Neotel announced its plans to start laying fibre optic cables in residential areas by November. The second network operator said it was in talks with various stakeholders and was confident it would conclude negotiations by the end of the year. Neotel senior OSP manager Imran Abbas would not provide specific details on which communities Neotel was looking at.