Maseco System Integrators (Maseco), a leading empowerment company, and Bytes Technology Networks (BTN), a division of the listed Bytes Technology Group (BTG), have announced the merger of their Western Cape operations, effective 1 April 2002.
All business activities previously conducted by Maseco and BTN in that region will henceforth be conducted through a new company, Maseco Bytes IT Solutions. Maseco hold 66.7% and BTG 33.3% of the new entity respectively.
"The merger enables Maseco and BTN to attain critical mass in an empowerment vehicle which boasts considerable service delivery capabilities. The organisations have operated for some five years in the IT market in the Cape region. With complementary business in government and corporate sectors, significant economies of scale and growth opportunities are anticipated," says Angus Fisher, previously BTN`s Western Cape regional director.
Nomvula Ndzengu, managing director of the new company, adds: "Maseco needed to make the transition from an entrepreneurial organisation to a mature corporate entity, thus increasing market opportunities. Maseco viewed BTN as an ideal partner to facilitate this change, with added long-term potential emanating from an association with BTG and the Altron group."
BTG executive director, Rob Griggs, says: "This merger has resulted in a formidable, well established entity with strategic supplier and client partnerships, strong empowerment initiatives, corporate governance disciplines and business expertise that will not only enhance existing business, but will equip the new company to progress into wider and more complex markets in the future."
Maseco has appointed its managing director, Nomvula Ndzengu as well as Motsamai Nduna and Johannes Clausen as executive directors of the new company, while BTG has appointed Angus Fisher. Rob Griggs and Brad Fraser represent BTG, predominantly in a non-executive capacity. The company`s empowerment objectives will be enhanced through the appointment of a suitably profiled non-executive chairman. An announcement in this regard will be made in due course.
Delivery of Maseco`s IT solutions, ERP implementation projects and systems integration skills to government, combined with BTN`s sophisticated call centre, existing corporate clients and formidable network management systems, services and processes, will result in a powerful new force in the Western Cape IT market with an expected annual turnover in the order of R100 million.
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