E-process company IcomXpress says its acquisition by a US bank will have positive effects for its South African clients, which are serviced by a channel presence.
Nasdaq-listed financial services group Zion Bancorporation acquired IcomXpress, a provider of workflow and e-process management solutions, on 24 July.
Speaking to ITWeb from the US, IcomXpress CEO Don Byrne said the acquisition will not alter the company`s presence in SA where it is represented through channel partnerships.
"The acquisition obviously means we will have added capital and we do aim to grow our company with Zion`s support, but I don`t think we will see direct representation by us in SA in the near future."
IcomXpress does, however, intend to strengthen its presence within the local market through additional partnerships with local companies.
"We are not arrogant enough to come to SA and presume to understand the market or the culture. Our clients are better represented by companies which understand the market and its people.
"We will be looking to increase our market share, but for the moment this will be done through the existing channel and by looking at additional partnerships."
Although SA and the Indian Ocean Islands only contribute 7% of the group`s revenue, Byrne still sees it as an important market with great potential for growth.
He notes that the continuing weakening of the rand is of concern, not just to his company, but to all international companies operating in SA.
The weak currency has seen a drop in margins for international players and the weaker IT market has knocked back the sales cycle as well as the repayment days, making for a less attractive market overall, he says.
Commenting on what the acquisition will mean for the company globally, Byrne says: "Our first priority is reinvesting in services and marketing to capitalise on the many opportunities facing us. Over the next 12 months, these investments will be followed by announcements of significant product enhancements, taking advantage of emerging technologies worldwide."
Byrne says the entire staff compliment of IcomXpress has been retained and the company will be looking to increase its staff in the near future. He adds that the company intends to make use of the additional clout the acquisition has given it, most especially through a significant cash injection.
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