JSE Securities Exchange-listed MGX Holdings has announced that the sale of Software Futures, its wholly owned software solutions company, to listed IT company Paracon will not go ahead.
Aletha Ling, CEO business development and strategy at MGX, says: "Paracon and MGX have been unable to reach agreement on the final terms of the acquisition specifically related to price, and as a result the negotiations have been terminated. We simply could not reach a pricing level that satisfied the criteria of both companies."
Ling says Software Futures will continue trading as part of MGX. "Software Futures has been a profitable, cash-generating business in the MGX stable and will continue to add value as a subsidiary of MGX, with its management team remaining intact."
Derek Hughes, Software Futures MD, says that despite the deal not going ahead, it had been a positive process between Software Futures and Paracon.
"Having gained knowledge about each other`s business to the extent that we have, we found strong synergies and have identified several opportunities that we will be exploring jointly."
He adds that the company`s management was supportive of the sale to Paracon, but that the team`s first allegiance was to Software Futures and it has reaffirmed its commitment to continue to run a highly successful business.
"Coming out of this phase we will concentrate our attention on core business operations to continue our track record of profitability and business success as an autonomous unit in the MGX group. We have no other corporate activities planned for the near future."
Established In 1995, Software Futures operates in the local and international software arena and has grown into one of SA`s largest, consistently profitable business software specialists. The company has established key alliances with international software giants including Microsoft, IBM, Oracle and Rational, and it serves most of the country`s leading corporate organisations.
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