Bytes Technology Group has acquired the business of Brand New Technologies (BNTech), a local identity management (IDM) company.
A subsidiary of the JSE-listed Altron group, Bytes says the purchase consideration is dependent on the attainment of certain profit targets over a three-year period.
BNTech provides products and solutions that focus on protecting, securing and validating identities. It offers biometric scanners, credentials management solutions and security devices, covering areas that include client registration, border management and document authentication. BNTech holds distribution rights for a number of the global IDM vendors' products and software solution sets.
Bytes CEO Rob Abraham says the acquisition of BNTech's business is in line with the company's acquisition strategy to secure businesses that offer higher returns and that can slot into existing operations.
"IDM is a rapidly developing area that has as yet not been commoditised like many other IT products and solutions."
Bytes says with the acquisition of BNTech, significant opportunities will arise for collaboration within the Altron group. "Bytes is the exclusive Southern African distributor for Unisys products, as well as Kronos, the global leader in workforce management solutions, while Altech Card Solutions offers data card products and card personalisation solutions. Bytes has also developed its own biometric middleware software solution in the form of its Navajo product suite."
Charlie Laxton, MD of BNTech, says the integration of BNTech into the Altron group will facilitate the formation of an IDM hub. He says, in conjunction with various operations in Bytes and Altech, the company seeks to secure contracts in both SA and Africa at large.
"Bytes' clients are predominantly in the retail and financial services space, and with the government being the largest IT spender in SA, it is important that we expand our interests in this area," notes Abraham.
The BNTech transaction follows a number of niche acquisitions over the past 18 months. Bytes recently also acquired UK security software business Security Partnerships, Unisys Africa and Alliance Business Solutions.
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