Managed services company Faritec has disposed of its IT contracting business, Faritec Contracting, to Paracon Holdings for R6.33 million.
Faritec says the price is subject to a possible downward adjustment by a maximum of R452 200.
"Our contracting business is no longer core to Faritec and we are focused on developing our managed services revenue streams," says Faritec CEO Simon Tomlinson.
The company, which plans to invest the proceeds of the sale into the growth of its managed services, has undertaken not to compete with the sold business for four years.
Faritec Contracting, which provides resource management services into the IT and telecommunications industries, is to be incorporated into Paracon`s resourcing division.
Paracon Resourcing MD Graham Bentley says the acquisition is part of Paracon`s strategy to expand its contractor and client base.
"Faritec`s contracting division is well established in the South African market and has an impressive client portfolio and contractor base," says Bentley.
Four permanent Faritec employees and an independent contractor base of about 100 will transfer to Paracon.
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