Reunert buys into tech consultancy firm IQbusiness

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 09 Mar 2023
Adam Craker, CEO of IQbusiness.
Adam Craker, CEO of IQbusiness.

JSE-listed Reunert today announced the acquisition of a 74.2% stake in local technology consultancy firm IQbusiness for an undisclosed amount.

The transaction was done through the JSE-listed firm’s wholly-owned subsidiary Reunert ICT, and is subject to the fulfilment of suspensive conditions as well as approval by the competition authorities.

IQbusiness was founded in South Africa in 1998, as an independent management and technology consultancy firm, by a group of individuals from global consulting firms.

It helps clients from all sectors to overcome their digital transformation challenges through the use of data analytics and data insights.

With revenue exceeding R1 billion and a team of over 1 000, Reunert says IQbusiness is a strong brand known to the market since its inception 25 years ago.

It adds that key competencies in IQbusiness include insights, consulting and contracting across consumer convergence in the financial services, retail and telecommunications sectors and manufacturing industry.

Under the deal, IQbusiness will form part of the Solutions and Systems Integration cluster of Reunert ICT.

The JSE-listed firm believes the acquisition of IQbusiness and its integration into Reunert ICT creates synergies for an expanded range of complementary offerings, with a significant increase in client access in both the enterprise and SME space, and improved routes-to-market through both direct and channel marketing relationships.

“The combination of IQbusiness and Reunert ICT aligns to our strategic intent to create the leading South African ICT company and provides offerings and capabilities in business optimisation, solutions and systems integration focusing on digital business transformation through data science, cloud adoption, artificial intelligence, cyber security and the internet of things. This will enable Reunert ICT to deliver end-to-end technology solutions to its 40 000 clients across the key verticals in multiple countries,” says the firm.

Alan Dickson, group CEO of Reunert, says: “The transaction has been concluded after extensive engagement between our two teams. There is a strong culture and values alignment between our teams and I am exceptionally pleased that all the management shareholders in the IQbusiness partnership have retained their equity investment.

“This reflects their belief and motivation in the transaction and will greatly enhance the integration of IQbusiness into Reunert. Reunert recognises the value of our combined teams who will drive the business forward together.”

IQbusiness CEO Adam Craker adds: “Our combination has a unique proposition to provide strategic value to our clients in South Africa, and internationally, with offerings centred on enabling our clients to win in the digital economy.

“Together we aspire to become the employer of choice attracting specialised skills on our digital journey.”

“This acquisition supports Reunert ICT’s growth strategy and enhances our strategic vision of solving business challenges with innovative, high-tech solutions that unlock value for our clients, our companies and our shareholders,” says Graeme Eddey, Reunert ICT segment head.

Rob Godlonton, CEO of +OneX, a subsidiary of Reunert ICT, comments: “The acquisition of IQbusiness adds meaningful scale to the Solutions and Systems Integration cluster in Reunert ICT. It is synergistic to the current investment made by Reunert ICT in +OneX, whose service offering we have expanded significantly since 2020.”

In 2021, +OneX, which bills itself as a new-age solutions and systems integrator that forms part of the Reunert Group, acquired Triple H Cloud Services to add a managed private cloud capability to its suite of business transformation solutions and services.