EOH has acquired 100% of IT firm Aptronics for R194 million. The deal is subject to normal regulatory approval.
Aptronics' core business is in the high-end data centre and end-user computing space, and its services include networking, virtualisation, servers, storage and infrastructure solutions. Aptronics has been in business for over 20 years, with turnover in excess of R500 million and over 200 large enterprise customers.
The purchase price is payable over two years by way of 50% in cash and 50% in EOH shares, subject to profits warranted. Aptronics warrants a cumulative profit after tax of R65 million over two years.
The technology service provider saw revenue grow 30% to R6 billion, while profit after tax for the six months ended 31 January increased by 36% to R464 million. EOH says the positive earnings are due to a combination of strong organic growth and acquisitions. Organic growth accounted for 54% of revenue after considering all acquisitions since 1 February 2015.
Anil Pema, CEO of Aptronics, believes that in joining EOH, Aptronics can bring a much wider range of value-adding solutions to its existing customer base, complementing its existing services.
"EOH is very excited to have Aptronics join our organisation. Aptronics is a recognised leader in its field, it has a strong management team and a skilled employee base. This enhances EOH's existing service offerings and improves EOH's capability in the high-end data centre and infrastructure space," says Rob Godlonton, CEO of EOH ICT Solutions.
"The cultural fit and shared value systems of EOH and Aptronics made EOH a natural home for our organisation," says Pema.
"Aptronics operates across all key industry verticals and already works with many of EOH's existing technology partners. Our combined value proposition will strengthen our relationships with both our joint customer base and our technology partners," notes Godlonton.
"Joining the broader EOH platform enables Aptronics to reach many more customers, expand geographically and enhance its delivery capacity. Our staff are fully on board, management is 'fired-up' and as an executive team, we are excited by this natural evolutionary step," concludes Pema.
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