Listed computer security group SecureData, has announced its strategic acquisition of listed computer networking integration group, PentaCom Holdings for R46,155-Million. The deal will create what is believed to be South Africa`s first technology driven information security management group.
In terms of the agreement, SecureData will purchase PentaCom`s entire business, including trademarks and the PentaCom trade name as a going concern, in return for the issue to PentaCom of 27 804 196 SecureData ordinary shares.
SecureData has performed well since listing at 50c in November 1998 and is now trading at R2.10. SecureData directors believe that the acquisition will hold significant synergistic benefits for both companies. "Through the negotiation process strong synergies have been identified which will be developed further, following the proposed transaction," comments SecureData Chief Executive Officer (CEO), Ian Melamed.
"SecureData is the only company in South Africa offering a total security solution right through, from IT security at the desktop, to network and Internet levels," he says. "Our strength, in addition to being totally focused on information security, is the fact that all our products and services ensure compliance with the internationally accepted BS7799 standard for Information Security Management."
Melamed, who is a member of the law commission on computer related crime, says that the three components of Information Security are confidentiality, integrity and availability. Historically SecureData, has had control over the first two of these components but relied on the ability and standards of third party vendors to deliver the availability, he explains.
"We have established a trusted reputation for providing customised IT security solutions for computer networks and the Internet through the supply of anti-virus software products, secure Internet service provision, data recovery, support, consulting and computer fraud training services, he says. "This provides a favourable fit with PenteCom`s complementary computer network infrastructure service offerings."
The PentaCom Group is one of South Africa`s largest systems integrators which provides complete `Standards-Based` networking infrastructures, as well as open systems products and services to its clients nationally. It also focuses on the installation and maintenance of copper and fibre cables and related data communications equipment.
PentaCom`s technologically advanced computer network infrastructure offerings comprising network, business and computer telephony integration systems coupled with its existing intellectual capital of the highest level, will complement SecureData`s existing computer security solutions, explains Melamed.
"Through the acquisition of PentaCom, SecureData is now in the advantageous position of being able to guarantee consistent standards throughout the Information Security Management process."
Melamed adds that PentaCom is the only local IT group that offers the combination of secure computer network systems integration with infrastructure architecture design. "By vertically integrating this focused group, SecureData has widened its niche in the IT services market both locally and globally."
According to PentaCom CEO, Stuart Diedericks, as well as combining complementary computer security management services, the acquisition will enable the merging of both companies` skilled workforces and management teams as well as the sharing and expansion of both companies` existing client data bases. "This will enable the group as a whole to maximise all growth opportunities and offer value added services through existing and future activities," he says.
According to SecureData`s Melamed, while SecureData has in excess of 2500 clients that provide annuity income, PentaCom`s strong focus on customer needs, combined with the provision of comprehensive systems solutions, has enabled it to secure long-term relationships with some of the world`s leading IT multinational companies. These include IBM, Microsoft, Fore Systems, Cisco, Bay Netoworks, Motorola and Xylan.
"The newly structured group will facilitate both Pentacom and SecureData`s vision of creating an information technology driven information security management group that will drive the future success of the SecureData Group," says Melamed. "It will also help both companies fulfil their vision of becoming global players."
SecureData is a specialist Computer Security group, listed on the Venture Capital sector of the Johannesburg Stock Exchange. SecureData has an established and trusted reputation providing standard and customised IT security solutions for computer networks and the internet. The company`s focus includes solutions that encompass consultancy and training, individual and corporate anti-virus, data recovery, fraud investigation and secure Internet service provision. SecureData`s strength lies in the fact that it is the only totally focused security specialist IT company in South Africa. For more information, take a look at the SecureData web site at http://www.securedata.co.za
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