Prism Holdings, the JSE-listed trusted transactions company and Gijima Technologies, a 100% black-owned entity focused on information technology, telecommunications and smart card technologies, have entered into an empowerment agreement in which Gijima will acquire 25.1% of Prism TranSwitch Services (PTSS) for R15.3 million in cash.
The deal is effective 1 December 2003 and is subject to competition board approval.
PTSS is the leading provider of electronic funds transfer (EFT) and bill payment processing services in SA`s retail and financial sectors, switching over 150 million transactions per annum on behalf of major retailers including Pick `n Pay, Shoprite and Edcon.
Prism CEO, Alvin Els says the arrangement with Gijima is a true partnership which benefits from both complementary skills and technologies.
"Prism has been looking for a suitable empowerment partner for some time but because of the niche area in which we operate, it has been a challenge to find the right one. We believe Gijima, with its focus on the secure payments market, will be a partner in more than name and equity.
"In addition, while PTSS is the largest independent transaction processor in the domestic retail space, its technologies are ideal for the extension of secure transaction services to the country`s unbanked. Gijima has a proven and dominant presence in the government and parastatal technology space, which will create significant opportunities for PTSS to work with parastatals and government to provide innovative new services for the masses," Els adds.
Gijima will appoint two directors to the board of PTSS, one of whom will be chairman, Robert Matana Gumede.
According to Gumede, Gijima had been attempting to get into the transaction-switching arena because it believes the future of the financial services industry, both private and public, will depend on switching capabilities and broad access to such facilities.
"The growth potential for electronic transaction processing is enormous as we increasingly move away from cash," he explains.
"We investigated the possibility of setting up our own switching infrastructure. However, with PTSS the clear market leader - and fully in tune with our vision - it made more sense to share in its expertise than attempt to re-invent the wheel.
"This is not a passive investment. Gijima is a focused and hands-on operational business and we seek to add real value to PTSS in terms of operational input, customer and business expansion," Gumede concludes.
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JSE-listed Prism Holdings Limited is a leader in the field of trusted electronic transaction products, solutions and services. The group has a strong presence in SA and an established and expanding footprint across Africa and South-East Asia.
Prism has a proven track record in the delivery of secure electronic payment technologies and end-to-end solutions for the retail, utilities, banking, cellular and petroleum industries. The group has developed and implemented innovative payment-centric solutions that bridge the following technologies:
* Chip cards including SIM cards, financial smart cards and telephone cards.
* Point-of-sale frameworks, applications and devices.
* OEM transaction modules including PINpads, card readers and self-service terminals.
* Transaction security modules and servers.
* Payment servers, messaging gateways and value-added-services gateways.
* End-to-end secure electronic payment architectures for wired and wireless networks.
Gijima Technologies
Gijima Technologies Group is a 100% black owned entity focused on information technology, telecommunications and smart card technologies. Founded in 1998 by Robert Matana Gumede (Executive Chairman) and Nhlanhla Mhlongo (COO), the company has a national presence with 18 offices countrywide and an employee base of 450.
The Gijima Group has developed and implemented complex solutions. The group is involved in the following:
* IT - system integration, software development.
* Telecoms - consulting, networking, support and maintenance.
* Smart cards - Manufacturing (the only 100% black-owned and managed in the world).
* Prepaid - scratch card manufacturing (GSM and fixed operators).
Gijima has won several awards for its role in technology include: 2000 Top 10 Black Achievers award from BMI-T and Department of Communications; 2001 Most Admired Black ICT Company - BMI-T and Department of Communications; 2002 Top 12 Black Empowerment Companies -Impumelelo Top 300 and IDC.
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