EOH bolsters its managed service business in public sector with TSS MS acquisition

IT service provider EOH has acquired TSS Managed Services for R130.5 million. EOH, which was recently ranked fourth among 200 listed companies in Financial Mail's Top Companies Survey, says the acquisition is in line with its strategic decision to strengthen its managed services in the public sector.

Beyond its pure business considerations, EOH is eager and committed to support government in improving service delivery. Over the past 11 years, TSS Managed Services has built impressive service delivery capabilities within the public sector, and will thus add significant value to EOH,” says Asher Bohbot, CEO of EOH.

TSS Managed Services was established in 2 000 and has over 620 employees. The company specialises in ICT infrastructure managed services, which includes end-user support; server management; network management; storage management; security management; infrastructure deployment and end-user training. With its head office in Woodmead, Johannesburg, and over 90 points of presence across South Africa, TSS Managed Services is ideally placed to provide its clients with services to manage and maintain their ICT environment. TSS Managed Services currently manages and supports over 50 000 devices across South Africa.

Bohbot says the acquisition supports EOH's transformation process and also improves its BEE credentials by increasing black management, black ownership and substantially increasing employment equity to 58%.

Jehan Mackay, Managing Director of TSS Managed Services, says: “EOH will provide the credibility and financial strength needed to compete effectively in the managed service space. EOH has a brand presence, which enables it to attract the best people in the industry. This will accelerate growth and further improve service delivery.” He says that “it is a privilege to be part of EOH and we are excited about the opportunities it presents for TSS Managed Services. EOH is a phenomenal South African success story and it is an honour to be part of the family.”

Mackay says: “The managed service space within the public sector needs another big service provider such as EOH. TSS Managed Services will be able to compete more aggressively as an EOH company. The contracts within the public sector are significant and EOH's credibility and prowess will assist in securing these deals. Together, our track record and service delivery skills, coupled with EOH's standing in the market, will assist us to achieve significant growth targets.”

TSS Managed Services will remain in Woodmead, with Mackay continuing as its Managing Director. Mackay will also join EOH's Executive Committee. “One of the main reasons for joining the EOH family is its entrepreneurial spirit, its culture and value system, and its ability to add value to our people, customers and partners,” says Mackay.

“TSS Managed Services is a strong, well-run business and I look forward to working closely with the management and great people of TSS Managed Services,” says Bohbot.

EOH has truly become a leading ICT player, with over 3 100 people, more than 2 500 clients, the widest range of ICT services and a significant footprint across the country.