JSE-listed MicroMega aims to take its IT business to the next level by finding a company that will complement its Intermap entity.
MicroMega chairman Greg Morris says Intermap is its most exciting IT company, but it will be difficult to find "like-minded entities" to pursue for acquisition. He says not many enterprises provide services similar to Intermap, and - at the moment - it is focused on buying resources.
In its half-year results, MicroMega reported revenue growth of 152%. The revenue increase from R61.2 million to R154.6 million was the result of organic and acquisitive growth, explains Morris. Of the R154.6 million, R60 million of that was added as a result of acquisitions, while the balance was organic. This translates into organic growth period-on-period of R34 million.
Intermap focuses on developing business process management systems using spatially located information and has clients in spheres such as government, banking, mining, telecommunications and medical research.
IT a core aspect
While evaluating acquisitions in the automotive and support services sector, MicroMega`s defined strategy going forward is to have four clearly defined sectors.
Of these sectors, information communication will receive attention as a growth area. However, Morris says, while continuously evaluating acquisitions, if it purchases a company that will shift its revenue stream to one sector, that company must be diverse. Morris adds the company does not wish to be dependant on one specific sector for its revenue.
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