JSE-listed Pinnacle Technology Holdings has bought 90% of JAG Engineering (SA), for an undisclosed amount.
JAG is a Johannesburg-based company that manufactures server racking, wall boxes and IP enclosures. The company will be incorporated into Pinnacle's Datanet unit.
"JAG presents considerable strategic synergy for the group and will give us the productive capacity that will underpin our drive into the data centre design and build space," says Nico Steyn, MD of Datanet.
"This is a market that is becoming increasingly relevant with current proliferation of cloud infrastructure and data consolidation."
In the year to June, Pinnacle reported revenue up 18%, to R5.8 billion, while headline earnings per share gained 49%, to 175.1c. Analysts consider headline earnings to be a key indicator of performance as it strips out unusual items.
Pinnacle declared a 35c a share dividend, which is a 52% gain.
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