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Ideco listed on AltX, and Blue Label Telecoms, DVT and TeliMatrix will list later this month.
Paul Booth
By Paul Booth
Johannesburg, 05 Nov 2007

The international world of ICT was quiet last week, with a handful of acquisitions by the major players. The local ICT scene was dominated by the listing of Ideco and the planned listings this month of Blue Label Telecoms, DVT and TeliMatrix.

Key local news

* Excellent interim numbers from SAB&T Ubuntu Holdings, with revenue up 66% and profit up 78%.
* Dimension Data`s Internet Solutions acquired the remaining 49% of LayerOne it didn`t already own.
* SAB&T purchased Cortell Consulting SA, a specialist BI solutions provider, for R6 million (50% + one share).
* SAB&T Ubuntu bought UK-based JMC Accountants, an accounting practice that includes accounting services that focus on SMEs situated outside London, for £110 000.
* Regiments Capital invested 20% in Psitek SA, a subsidiary of Psitek, a company that develops content and data services using cellular technology for underserviced regions.
* Royal Bafokeng Holdings invested 30% in Praxima, an outsourced and HR service provider.
* Ideco, a BEE biometrics company that provides customised identity management solutions based on Sagem`s biometric technology, listed on AltX.
* Naspers intends to dispose of NetMed, its pay-TV operator in Greece and Cyprus.
* Simeka BSG would like to change its name to Simeka Business Solutions Group.
* Tata Consulting Services (TCS) intends to set up a South African operation and sell 25% of its shareholding to a local BEE partner. TCS has had an indirect local presence for 12 years, delivering services through Conscripti, an IT solutions and services company. In addition, Tata and TCS staff have been employed in this country at organisations such as Absa and MTN through the auspices of Dimension Data and Faritec.
* Craig Christensen was appointed deputy CEO of IFCA Technologies.

Key African news

* Excellent half-year numbers from Nigeria`s Chams Nigeria, an IT solutions company that plans to list via a private placement. No African IT company outside SA is listed in the top 500 African companies list.
* Mediocre Q3 numbers from Egypt`s Mobinil.
* Dimension Data bought Accelon, a communications services company operating in Ghana and Nigeria.
* Egypt`s Orascom Telecom sold off some of its shareholding in Hutchison Telecommunications International.

Key international news

Tata Consulting Services intends to set up a South African operation.

Paul Booth, MD, Global Research Partners

* Cisco acquired Securent, a provider of policy management software for enterprises.
* CSC acquired First Consulting Group for $365 million. First Consulting is a provider of IT services and products to the healthcare market.
* EMC purchased Voyence, a provider of network configuration and change management solutions that automate critical change, compliance and activation processes.
* Microsoft bought Global Care Solutions, a Thai company that develops enterprise-class health information systems.
* Platinum Equity, the private equity company, bought Covad Communications Group, a major services provider, for $303 million.
* Samsung Electronics acquired TransChip, an Israeli memory chipmaker.
* Cerberus, a private equity company, has withdrawn its $6.1 billion bid for Affiliated Computer Services.
* Excellent quarterly results from Garmin.
* Very good quarterly figures from Foxconn Electronics (Hon Hai Precision Industry), Quanta Computer, Toshiba and ZTE (one of China`s major ICT companies).
* Good quarterly numbers from Gartner, Lenovo, MicroStrategy, Perot Systems, Rogers and Teradata.
* Satisfactory quarterly results from ACS, Amdocs, CA, Chunghwa Telecom (Taiwan), EDS, KPN NV, Matsushita Electric (Panasonic), Open Text, Qwest Communications International and Telus.
* Mediocre quarterly results from CACI International, Dassault Systemes SA, Eastman Kodak (back in the black), Embarq, LG Telecom, Logitech, NCR, Pitney Bowes, TietoEnator (a major Scandinavian IT services provider), Verizon Communications and Western Digital.
* Very poor quarterly figures from Sprint Nextel.
* Quarterly losses from Adaptec, Alcatel-Lucent, Andrew, Hitachi, OKI, Pioneer and SMIC.

Look out for

* The winner of the battle for mapping company Telecom Atlas, between Garmin and TomTom.
* The possible sell-off by the SCO Group of its Unix and other software assets.

Research results and predictions

* Worldwide semiconductor sales in September rose 5.9%, fuelled by consumer electronics demand. Q307 sales were also up 5.9% from Q306, according to the Semiconductor Industry Association.

Stock market changes

* JSE All share index: Down 0.8%
* Nasdaq: Up 0.2% (highest weekend close since November 2000)
* Top SA share movements: African Cellular Towers (+13.7%), Celcom (-11.1%), Cyberhost (-10%), Huge Group (+10.5%), Labat Africa (-11.1%), SAB&T Ubuntu (-9.3%) and Spescom (-9.7%)

Final word

Mabili will release its latest Directors` Remuneration Report on Tuesday. In terms of the IT sector, it comments that from an executive director`s point of view, the IT industry is the lowest paying industry, although the fees paid to non-executive directors are much more favourable.

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