Sekunjalo makes IT acquisition

By Iain Scott, ITWeb group consulting editor

Johannesburg, 10 Feb 2006

Sekunjalo is acquiring IT systems company FIOS for a maximum of R17.3 million.

FIOS, founded in 2002, focuses on the deployment and support of financial performance management systems and is a value-added reseller of Cognos Office financial solutions.

According to Sekunjalo, which will bring the acquisition into its Sekunjalo Informatics and Telecommunications Africa (SITCA) business, FIOS is the only value-added reseller of Cognos Enterprise Planning and Cognos Controller in southern Africa.

Sekunjalo's deputy CEO, Norman Noland, says the acquisition strengthens SITCA's strategy to expand in the performance management solutions market.

The deal is the latest in a series of acquisitions in the IT sector. Last year, purchases included an 81.5% stake in Synergy Computing, a provider of business intelligence solutions based on the Cognos platform.

Other acquisitions included 24% of a subsidiary of London-listed XN Checkout, as well as 30% of online stock trader Sharenet.

Noland says the FIOS acquisition is being carried out in three tranches, with 51% acquired with effect from 1 September at a price of R5.3 million. Another 25% will be bought with effect from 1 September 2006 and the remaining 24% from 1 September 2007.

The price of the second and third parts of the acquisition will be based on a formula based on FIOS's earnings.

Sekunjalo CEO Iqbal Surve said in December that the group was considering listing its IT interests, which also include Semtech and Health Systems Technologies.

The group also has investments in healthcare and pharmaceuticals, aquaculture and biotechnology, financial services, and food and fishing.

The Sekunjalo share closed unchanged at 84c on the JSE yesterday.