All the conditions for its R170.9 million purchase of Axiz have been met and the deal is now wrapped up, says listed computing company Pinnacle.
Pinnacle announced in July that it was buying the channel company from management and staff, who own Axiz. The deal will create SA's largest channel-focused company.
Yesterday, Pinnacle said the conditions attached to the deal have been met and, as a result, the transaction is unconditional and “materially completed”.
Axiz will add around R2 billion to Pinnacle's annual revenue as the company turned over R1.8 billion in the year to December 2009. Profit after tax was R18.3 million. Pinnacle says it wants to “materially” increase Axiz's profit as a percentage of revenue.
Pinnacle's last set of results, for the year to June, showed revenue of R3.17 billion, while net profit was R141 million. The company has seen compound annual revenue growth of 24% over the past 12 years. Its net profit after tax has grown by 33% on a compounded basis over the same time frame.
Axiz has just over 300 staff members, and provides hardware, software and its own brand, Axiz. It resells for several major brands, including LG, HP and Samsung.
Pinnacle offers brands such as Apacer, CA, Canon, Dell, Hewlett-Packard, IBM, Intel, LG, Logitech, McAfee, Microsoft, Modrac, Novell, Samsung, Sony and VMware, along with its own Proline range of ICT equipment.
Pinnacle is the largest channel company on the JSE, with a market capitalisation of R1.2 billion. Its rival, Mustek, has a market capitalisation of R409 million. Privately-held competitors include Tarsus Technologies, which is owned by private company MB Technologies; and Sahara.
Its next set of results, for the six months to December, will be published during the week of 21 February.
Share