Tactical Software Systems (TSS) and Bytes Technology`s National Data Systems (NDS) have formed a new black-empowered company, TSS Managed Services.
The company has been formed through the merger of empowerment company TSS`s networking business unit with NDS`s selected client operating divisions, NDS Specialised Services.
TSS has a 60% stake in the new venture while NDS holds the remaining 40%. TSS Managed Services has 100 employees and while chairman Danny Mackay says he cannot disclose turnover numbers, they are significant.
He says the company has legally been in existence for six months, and the first set of financial results shows that it is already profitable.
The companies say the new venture brings a blend of products and services supported by extensive industry operating capability and management experience.
Among other things, NDS is the sole distributor of NCR IT products in SA. TSS has been active in the IT market for five years and has a fully-fledged accredited SAP practice.
Mackay says the process leading to the formation of the new company took 18 months to two years. "NDS wanted to ensure that it had the right partner, and then while we were in negotiations MGX-Motswedi happened," he says, referring to the acrimonious split between IT company MGX and its empowerment partner.
He says TSS also wanted to ensure that the new company fitted with its understanding of black empowerment.
NDS was looking for an empowerment partner to help grow its field maintenance service and support, project delivery and infrastructure services, while TSS wanted to expand its services business.
"It was also important, as a black business, to demonstrate that we can do the job."
Mackay says TSS has worked with NDS before and has several deals where it has used NDS infrastructure.
In future, all renewals and new business in this space from both companies will be driven through the new entity.
Among others, NDS`s break-fix support for the South African Revenue Service has been renewed through TSS Managed Services and the Standard Bank contract has also been ceded to the company.
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