AltX-listed Xantium Technology Holdings is acquiring two companies for a total of R108.3 million.
Following sharply on the heels of several other acquisitions, Xantium is buying management consultancy Simeka Consulting for R43.8 million and infrastructure management firm Sifikile Procurement Services for R64.5 million.
This brings to five the number of acquisitions the company has made since listing on the JSE's AltX exchange in August last year.
Recently the group announced the acquisition of Foster Melliar for R6.13 million, 51% of Waymark Consulting for R8.42 million, and Spec Systems for up to R30 million.
Xantium says the latest two deals bring its broad-based empowerment ownership from 34.5% to more than 50%. In addition, Simeka's 38 management consultants and Sifikile's 152 IT technicians means 55% of the group's staff are historically disadvantaged individuals.
It adds that the acquisitions will broaden its customer base in both government and the private sector and bring significant annuity revenue streams through long-term service and procurement contracts.
Simeka has a national client base including government and telecommunications and energy customers, while Sifikile partners with Siemens Business Services on contracts for private and public sector customers.
The R43.8 million being paid for Simeka comprises R10.94 million cash, R5.34 million in the assumption of liabilities and the balance through about 45.94 million Xantium shares at 60c each.
Sifikile's R64.5 million price tag is being paid in cash of R14.06 million, R15 million in the assumption of liabilities and the balance through about 59.06 million shares, also at 60c a share.
Simeka MD Kamal Ramsingh will join the Xantium board as an executive director, and is being appointed chief operating officer. Joining the board in a non-executive capacity are Simeka CEO Barry Fraser, Sifikile director Robinson Ramaite and Sifikile CEO Dumisani Khoza.
Xantium is still trading under a cautionary, since it is involved in talks related to other acquisitions.
The group's share closed unchanged at 49c on the JSE on Friday.
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