Black company invests in Fujitsu SA

Johannesburg, 10 Mar 2005

Black empowerment investment company Yard Capital has acquired a 30% stake in the South African division of Japanese-based technology company Fujitsu.

The details and terms of the transaction have not been disclosed, as the companies say it is more important to announce that the stake has been acquired.

Leslie Maasdorp, former director-general of the Department of Public Enterprises, and MTN executive director Irene Charnley head up Yard Capital.

The deal comes ahead of the anticipated launch of the ICT black empowerment charter at the end of this month, and will see the companies combine forces to target the public and private sectors` IT service needs.

Speaking at the announcement of the deal yesterday, Fujitsu Services CE David Courtley said that besides the deal being in line with the country`s black empowerment goals, his company would also benefit from Yard Capital`s experience in numerous fields.

Maasdorp is "more than excited to be aligned with a powerful brand such as Fujitsu".

The deal will see Yard Capital taking an active role in Fujitsu`s day-to-day operations, and the investment company has also been granted two seats on Fujitsu SA`s board.

"We are glad that this deal entails direct investment and ownership in the company, because gone are the days when passive partnerships were perceived as true empowerment," noted Maasdorp.

Courtley commented that his company selected Yard Capital as a partner after being presented with numerous options, primarily because it felt Yard was well informed, had a promising future, and the two would not have any business culture clashes.

"In Yard Capital we found a team with impressive credentials and a track record who are prepared to participate actively in the development of our South African operation. Their executive team collectively has extensive experience in both the private and public sectors," he noted.

Fujitsu SA chairman Mike Stares emphasised: "In essence we were looking for a partner with the kind of credentials that would augment our existing strong presence especially in the public sector. When we first started talking to Yard Capital, the idea of simply meeting certain minimum charter conditions was not really on our mind."

"This deal is, in effect, the culmination of a series of strategic moves in this country by Fujitsu," said Fujitsu MD, Elvin de Kock.

"It began with a restructure of the South African operations a few years back, integrating it into the global operation which stretches over 52 countries. This made available the full capability from Fujitsu`s various subsidiaries to this country, relocating its UK and European call centre to Johannesburg, and finally the partnership with Yard to ensure a strong South African focus."

Fujitsu is the world`s third-largest IT company with annual revenues of R300 billion and over 156 000 employees.