EPI-USE Systems, one of the world`s premier providers of information technology solutions, has announced that a prominent black empowerment consortium led by Avalanche SA and Nokusa Holdings has acquired a 40 percent stake in the local operation and 5 percent of the global business for an undisclosed amount. As part of the agreement, the Consortium has the option to further increase its shareholding to 51 percent locally and 20 percent globally.
According to EPI-USE Systems chief executive, Danie Behr, "This agreement has reinforced EPI-USE Systems` positioning in the South African and African economies. The business knowledge, skills and experience within Avalanche and Nokusa will complement the technical expertise of EPI-USE to further enhance the value of its offerings to its client base. This transaction also puts EPI-USE ahead of a number of ICT companies in terms of compliance with the ICT Charter currently being finalised by the industry."
The BEE Consortium comprises a broad-based constituency including Avalanche SA, Nokusa Holdings, Ahanang Investments, Savela Investments, South African Youth Council Investments and Krew Capital.
Avalanche SA chief executive, Dr. Kinesh Pather supports the essence of the ICT Charter and views this as a baseline for economic empowerment transformation within the sector and not just an add-on programme, but as an integral part of its strategy for further growth and development.
"Our pledge is to drive our broad-based black economic empowerment transformation policy aggressively through our understanding of the empowerment imperatives regarding value creation, training, education and capacity building of historically disadvantaged individuals. The newly formed partnership is committed to provide equal opportunities, irrespective of origin or gender. We`ve formed a transformation sub-committee within EPI-USE to address and implement a transformation plan as we deem it appropriate going forward," says Pather.
Moss Hadebe, the CEO of Nokusa Holdings, says EPI-USE Systems and its new equity partners have been actively involved in joint business initiatives for more than two years. "Unlike many other BEE transactions, we have a long-term business relationship that has already proven to be successful. Our combined skills and similar business culture will add considerable value to the new company. The Consortium will be actively involved in operations of EPI-USE. In due course, it will be deploying people at all levels including a number of senior executives."
Representing Ahanang Investments, the new Chair-elect and a participant in the Consortium is Saki Macozoma, who has committed himself to further develop EPI-USE as a proudly South African global company.
Behr expects to double the size of the business over the next three years. "Both EPI-USE and the Consortium are very active throughout the rest of Africa, we expect to grow this business dramatically over the next few years. This agreement will not only enhance our business in the African market, but globally as well."
Dr. Pather says the relationship has without doubt proved itself. "We have been conducting business in a joint venture partnership agreement over the past two years, specifically to determine the viability of working together. Not only have we realised that the cultures within our companies are complementary, but we have shown business successes through this partnership. Protection mechanisms have been put in place to ensure that the agreement is beneficial and sustainable to both parties."
The financial deal structure contains innovative elements not before seen in empowerment deals within the ICT sector. These mechanisms optimise the prospects of success for the business, management and its new empowerment shareholders.
Maphum Nxumalo, Director of Strategic Business Development SAP Africa says "SAP has a long standing relationship with EPI-USE, within its partnership ecosystem." EPI-USE has played a major role in the implementation of the SAP HR/Payroll system in organisations like City of Cape Town, Sasol and ABSA.
SAP Africa commends EPI-USE for undertaking this bold initiative of true commitment to the South African economy and the advancement of BEE.
New EPI-USE Chairman elect Saki Macozoma said: "We, as part of the Avalanche Consortium, are pleased to have concluded this agreement with the EPI-USE shareholders. The opportunities within the market are vast and I believe we are now perfectly positioned to take up large projects and be poised for development within the African continent. The consortium partners bring vast experience and knowledge and global relationships to entrench ourselves as the partner of choice for any large IT project."
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