Bytes Technology Group (BTG), part of the Altron Group, yesterday announced that it has acquired Plato Computer Services (UK) Limited for GBP22.5 million (approximately R360 million) as an initial cash purchase consideration.
It was also agreed that BTG will pay an additional cash consideration not exceeding GBP5.5 million based on the earnings before interest and tax (EBIT) of Plato for the 12 months ending 31 December 2002.
Plato is a software and services consulting business offering expertise in a wide range of computer services including applications development, technical and managed services, a centre of excellence and product-based services.
Chairman and Chief Executive Officer of BTG, David Redshaw, said: "It is anticipated that Plato and our existing Bytes UK operation could, together, generate around 40% of the group`s total revenue during the February 2004 financial year, a significant increase over the 28% generated during the year ended February 2002."
He said Plato has developed key expertise in legacy systems integration, the design and implementation of new media developments, storage technologies, networks, security, Internet technologies and advanced client server systems.
Redshaw further stated that as a leading UK multi-functional supplier of IT services to a broad range of blue chip customers, Plato has built a solid reputation and track record of providing solutions that meet its customers` defined needs.
Plato`s customers include Royal Bank of Scotland/NatWest, TUI (Thomson Travel) and Daimler Chrysler. Plato also provides consultants, on an interim basis, for technical architecture, technical appraisal and audit, requirements definition, training and trouble shooting assignments to its clients.
Said Redshaw: "BTG acquired Plato in order to broaden its range of specialised IT activities in the UK and Africa. Our existing subsidiary in the UK (Bytes UK) is engaged in the provision of IT solutions for the enterprise, primarily predicated on the licensing of Microsoft software products.
"Although profitable and successful, we have for some time been concerned by the potential vulnerability associated with Bytes UK`s extensive dependence on its software licensing business. That is why we have decided to diversify our IT activities in the UK through the acquisition of a broad-based IT services business to complement Bytes UK."
Redshaw said BTG has also identified Plato because it provides in-depth and mission-critical IT solutions to a relatively select number of blue chip corporates while Bytes UK on the other hand provides a high level service to a broad range of customers. This presents substantial opportunities for each operation to exploit hitherto untapped business opportunities in the other`s client base, either in isolation or in conjunction with that other operation.
The acquisition is subject to the approval of the acquisition by BTG shareholders in general meeting and the approval of the acquisition by the necessary regulatory authorities, including the Exchange Control Department of the South African Reserve Bank and the JSE Securities Exchange South Africa.
For further details on the group and the group`s directors please refer to: http://www.altron.co.za/
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