JSE-listed electronics company Jasco sees convergence as a growth driver for its ICT unit, and is seeking more bolt-on acquisitions, after buying ARC Telecoms.
Jasco bought ARC, founded in April 2010, earlier this month for an undisclosed amount. The purchase forms part of its plans to grow through bolt-on acquisitions.
Mark van Vuuren, MD of Jasco ICT Solutions, says Jasco will continue to seek bolt-on acquisitions to drive growth in the enterprise space. ARC Telecoms, which is a converged voice and IP data telecommunications service provider, will be incorporated into Jasco's ICT solutions unit.
Jasco is seeking to complement its existing offerings and wants to either buy companies that extend its customer base, or offer “sexy” products and solutions, notes Van Vuuren. He says future acquisitions will be “strategic”.
Limiting competition
Van Vuuren explains Jasco wanted a business with synergies, such as an existing customer base, to which the company could cross-sell into its three verticals. He says the group also wanted to take potential competition out of the market to get enough scale to dominate the sector.
There is a shift towards IP-based communications, says Van Vuuren. ARC complements Jasco by offering it a voice platform and unlocks new products Jasco can sell into its traditional enterprise space, he says.
Van Vuuren adds Jasco also plays in the last-mile carrier space by offering fibre connections, and it can now add ARC's offerings to this service. Jasco sees an opportunity to extend the fibre last mile to small and medium businesses as well as into gated communities.
All 15 of Jasco's employees have moved to Jasco and are being incorporated into its existing structure, says Van Vuuren.
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