Poynting has formally concluded its acquisition of African Union Communications (Aucom), saying it will look to capitalise on digital migration once that process gathers momentum.
The listed group, which makes antennas and telecoms products, bought Aucom in July last year, for R49.5 million, which it paid for by issuing 66 million shares, at 75c a share.
The firms yesterday described the deal as "consolidating the strengths of both companies, which includes Poynting's provision of innovative digital products in digital television and Aucom's established client network within SA and Africa".
Aucom provides products, system integration, and implementation and commissioning services to broadcast and telecoms markets. The company says it wants to tap into Poynting's resources to expand its reach across Africa.
Digital delay
Aucom MD Villiers Joubert says the company will look to capitalise on possibilities presented by digital terrestrial television (DTT). "The convergence of voice, data and TV are what we are working with."
But SA has fallen behind schedule to migrate from analogue transmission to digital and, with the International Telecommunication Union's mid-2015 deadline looming, there is an urgent need to officially launch DTT.
Joubert says the merger will tap into synergy opportunities. "Aucom and Poynting are joining forces with the intention of attacking the market."
Poynting CEO Andre Fourie expects the deal to increase Poynting and Aucom's market share, while simultaneously raising capital as the company seeks involvement in DTT projects across Africa.
Aucom will retain its name and current structure, says Fourie, and the merger will "foster the synergies without having to get the companies under one brand".
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