Listed outsourcing company EOH aims to grow revenue and expand its client base, after buying IBM infrastructure and services business Glacier Consulting, for R36 million.
The deal was wrapped up in February, but backdated to 1 November last year.
Glacier MD Keith Lyon says EOH did not have an IBM product in its stable before, and adding the offering to its product line will expand EOH's existing services and client base.
Glacier has 12 corporate clients in mining, financial services and telecommunications that it serves on a regular basis. It also has several ad hoc clients, says Lyon.
In March, EOH CEO Asher Bohbot said the company aimed to reach R4 billion in revenue in the 2014 financial year. He said this would not only be through organic growth, but acquisitions would play an important part. Last year, the company's turnover was R1.255 billion.
Tough call
Lyon says Glacier was not up for sale, but it was approached by EOH and decided to sell, because the deal would open up new opportunities.
Glacier is targeting year-on-year growth of 20% on the revenue line for the next few years as it can cross-sell into EOH's existing client base, says Lyon.
He adds that Glacier will remain a standalone entity within the EOH stable, although the back-office aspects, such as administration, are being integrated. The opportunity to continue operating as an autonomous entity was another reason Glacier was attracted to the deal, explains Lyon.
Glacier was formed in 2000 by Lyon and three other technical specialists. Two years later, it moved into the IBM product market, achieving tier one status within a year.
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