Bytes Technology Group (BTG), through its division Bytes Business Solutions, has acquired the 40% shareholding owned by Old Mutual in Uskotec for an undisclosed sum.
BTG previously held 60% of Uskotec and management says despite several substantial local and overseas offers for the company and its shareholding in Uskotec, BTG decided to buy out Old Mutual in keeping with BTG`s strategy of increasing its investment in the software solutions arena.
The wholly-owned Uskotec, now renamed Bytes Software, provides customised developed software, consultancy services and managed IT outsourcing facilities.
Restructured BTG contributed 11% to listed parent company Altron`s headline earnings for the last six months, turning in headline earnings of 14.26c per share, compared to a loss reported for the comparable period.
According to BTG management, the acquisition provides it with the flexibility to conduct the business activities of Bytes Software in a less restricted manner, and to enhance its offerings to customers and the market as a whole.
It says Old Mutual, Bytes Software`s primary customer to date, has been fully supportive of this transaction and has welcomed the commercial and "arms length" relationship between supplier and customer which has now evolved.
"It is our aim to turn Bytes Software into a customer-focused software provider of solutions to the local and international markets," says Bytes Software MD, Sid Stoffberg.
Bytes Software will continue to have a service provider relationship with Old Mutual, and Old Mutual has outsourced the support and maintenance of certain of its legacy systems to Bytes Software.
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