JSE-listed CS Holdings has acquired the PricewaterhouseCoopers (PWC) Consulting JD Edwards (JDE) Practice for an undisclosed amount. The PWC practice is one of the top five JDE consulting firms in SA, and this agreement will make CS Holdings one of the largest JDE partners in Southern Africa.
CS Holdings executive director, Dave Vink, says the annual revenue contribution of the acquired practice to CS Holdings will be an estimated R10 million to R15 million.
"The acquisition of the PWC JDE Practice means exponential growth for our JDE business, and puts us in a leading position in terms of JDE knowledge and experience in the local market. PWC`s existing order book and the goodwill it brings with it will also benefit CS Holdings. PWC has a long record of successful implementations on large projects within prominent blue chip organisations."
The acquisition enhances CS Holdings` ability to offer a true range of application services and will also add to the already established offerings in the SAP industry, the mid-range industry including Accpac and Great Plains, as well as a range of consulting and manufacturing services.
CS Holdings CEO, Annette van der Laan, states CS Holdings` JDE business has experienced significant organic growth in the past few years. "The resources and experience that the PWC Practice brings are of great value to CS Holdings and our customers. This acquisition further enhances the sustainability and critical mass of the CS Holdings JDE consulting business," she says.
"The JDE consultants that will be joining CS Holdings are highly experienced across a wide spectrum of industries and functional areas," adds Vink. "This acquisition brings our total number of senior JDE consultants to more than 30, so we have a thorough understanding of the components and processes needed to successfully implement the product. This is one of the key attributes that differentiates CS Holdings from its competitors."
As part of the agreement, CS Holdings will have access to both the local and global PWC client bases. This means all PWC clients will work with PWC and CS Holdings on local JDE implementations in future.
Managing director for PWC Consulting, Alfons Meyer, explains the rationale for the acquisition, saying: "We are not a first tier player in JDE in SA, and therefore this business is not aligned with our strategic focus. We do not have critical mass to deliver large end-to-end, integrated JDE projects and we believe CS Holdings is the best option to take over the business, for two reasons: Firstly, they are already a major player in JDE and will probably be number one in SA following this acquisition. Secondly, CS Holdings is the best place for our JDE staff in terms of career development. Of course we will continue working together in the future as business partners."
JD Edwards managing director, Mike Evans, is positive about the acquisition, and says he regards CS Holdings as a very serious business partner.
"CS Holdings is one of our premier partners. This is a positive move from both PWC and CS Holdings perspectives, and I believe all parties will derive great benefit. Most importantly, JDE consultants from PWC will continue to work for one of our top JDE partners in Africa."
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CS Holdings is one of SA`s leading business consulting and IT services firms. It tailors business solutions from a broad suite of integrated service offerings across the range of processes, people and technology requirements.
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