JSE-listed Paracon Holdings is to acquire Time Quantum Consulting`s Cape Town-based IT contracting and services business for R11.1 million.
It has also been granted an exclusive option, exercisable on or before 30 November, to buy the Gauteng-based IT contracting and services business of Tee Que Trading Services.
The Gauteng business carries a price tag of R34.5 million.
"The option for the Gauteng acquisition has been entered into because certain criteria need to be satisfied prior to Paracon electing to exercise the option," the company says.
"In the event that the criteria are satisfied, it is Paracon`s intention to exercise the option by no later than 30 November 2004."
It says the acquisitions are line with its strategy of acquiring quality IT service businesses to which it can add value.
"Paracon believes that Time Quantum and Tee Que`s extended client base and geographic spread provide potential for significant growth in the Paracon group`s market share both in Cape Town and Gauteng.
"Time Quantum and Tee Que offer services which are highly complementary with those currently offered by the Paracon group, leading to considerable benefits."
It says the acquisitions will be funded from available cash resources.
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