CS Holdings has acquired First National Bank`s (FNB`s) IT customer services division, including all operational assets and liabilities as well as 280 staff.
The business services and maintains FNB`s teller machines, point of sale base and a range of desktop, networking devices and other peripherals.
The deal, which was carried out for a nominal sum, will see CS Holdings incorporate the entire business into its managed services division. The group expects the acquired business to generate revenue of more than R60 million in its first year.
The parties say FNB`s black economic empowerment (BEE) procurement policy will benefit from CS Holdings` BEE profile.
FNB Technology CIO Yatin Narsai says although the IT customer services (ITCS) division provides support services to other companies, it has been largely unable to offer similar services to other banks because of its association with FNB.
"FNB reviewed the role of ITCS within the group and believes that ITCS would be better positioned within a specialist IT environment," he says.
Gary Lailvaux, CS Holdings Managed Services operational director, says ITCS has a national footprint of offices, staff and infrastructure similar to CS Holdings.
"The integration of ITCS into CS Holdings will result in overhead cost and infrastructure savings," he says.
CS Holdings CEO Annette van der Laan says the agreement will enhance CS Holdings` skills-base and give it a strong foothold in the lucrative IT services market.
"With limited competition in providing IT support services in the banking sector, CS Holdings will now be able to grow aggressively and compete head-on with other major players in this sector," she says.
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