Faritec Holdings, a JSE listed managed services company, today announced the acquisition of the commercial security division of Nanoteq, a wholly owned subsidiary of Business Connexion. The financial details of the deal have not been disclosed, although as part of the transaction, ten Nanoteq employees will transfer immediately to Faritec.
Nanoteq`s commercial security division offers the private sector market a range of security products and solutions. The division will now be incorporated into Faritec`s Managed Security Service (MSS) offering. The acquisition will not affect Nanoteq`s public sector division, which focuses primarily on providing ICT security solutions to the government sector.
"Nanoteq`s commercial security division is well established in the South African market, has an impressive client and technology partnership portfolio, together with some of the best security experts in the country," says Gordon Love, head of security services at Faritec.
The acquisition of its commercial security division by Faritec marks a return to its roots for Nanoteq, according to its CEO, Nelius Snyman. " Nanoteq is now returning to where it started sixteen years ago by focusing on providing the public sector with highly secure, advanced, customised ICT security solutions," says Snyman.
Faritec launched its MSS offering into the Southern African market in April 2003, offering managed security services to clients 24 hours a day, seven days a week, for a monthly subscription. The services are fully managed solutions with all configuration, maintenance and monitoring managed remotely from its new R8 million Security Operations Centre (SOC) in Johannesburg.
"This acquisition strengthens our capability to offer companies a greater degree of security than they could ever do on their own," continues Love. "Most companies simply do not have the resources, technology and information to protect themselves against security breaches that are estimated to directly cost the South Africa economy R1 billion each year."
Faritec`s MSS has already delivered revenue of R25 million in its first year of operations and aims to have a revenue stream of approximately R170 million by 2006, capturing a 30% share of the potential R568 million market. "This strategic acquisition makes Faritec the largest security service provider in Southern Africa, and is directly in keeping with our strategy to become the leader in the managed services market in Africa," concludes Simon Tomlinson, CEO of Faritec.
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