Bytes 'manages to identify' another unique acquisition

Bytes Technology Group (Bytes), a subsidiary of the JSE-listed Altron group, has acquired the business of identity management (IDM) company Brand New Technologies (BNTech). The purchase consideration is dependent on the attainment of certain profit targets over a period of three years.

BNTech is a leading provider of products and solutions, specialising in protecting, securing and validating identities. It offers an array of biometric scanners, credentials management solutions and security devices, covering a broad spectrum of areas including client registration, border management and document authentication. BNTech holds distribution rights for a number of the world's leading IDM vendors' products and software solution sets, including exclusive distributor rights from Tr"ub and Lumidigm.

"The acquisition of BNTech's business, which operates in a niche but fast-growing industry, aligns with our acquisition strategy of securing businesses which offer higher returns and that can slot seamlessly into our existing operations," said Rob Abraham, CEO of Bytes, adding that IDM is a rapidly developing area which has as yet not been commoditised like many other IT products and solutions. "With our group's extensive know-how and footprint, we can help incubate these acquisitions and develop them into larger businesses," said Abraham.

Charlie Laxton and Dave Crawshay-Hall, MD and CTO respectively of BNTech, carry a wealth of experience in the IDM and related technologies arena, having been at the forefront of this industry over the past two decades. "The extensive knowledge and relationships which Charlie and Dave bring to the group will accelerate our growth in the IDM market," commented Abraham.

With this acquisition, significant opportunities will arise for collaboration within the Altron group, particularly between certain Bytes and Altech operations, with BNTech's suite of products complementing existing offerings. 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. Additionally, Bytes has developed its own biometric middleware software solution in the form of its Navajo product suite.

"The integration of BNTech into the Altron group will facilitate the formation of an IDM hub, which will enable us to offer a holistic, end-to-end offering to the market, something which is currently not available from any provider of IDM solutions," said Laxton. "In conjunction with various operations in Bytes and Altech, we are confident of securing significant contracts, not only in South Africa but in a host of African countries on the back of the group's strong reputation and standing."

BNTech is firmly entrenched in both the private and the public sectors, having been extremely successful in providing products and solutions to the banking, insurance and retail arenas, as well as government departments. BNTech's presence in the public sector fits well with Bytes' ambition of expansion in this area, with Bytes having established a focused Government Solutions division with the mandate to increase business in this sector.

"Bytes' clients are predominantly in the retail and financial services space, and with the government being the largest IT spender in South Africa, it is important that we expand our interests in this area," said Abraham.

The BNTech transaction follows a number of successful niche acquisitions that Bytes has made in the last 18 months. It acquired UK security software business, Security Partnerships, Unisys Africa and Alliance Business Solutions, the latter being a leader in the South African ERP space and an Oracle Platinum Partner.