Synergy Computing, a provider of business intelligence solutions based on the Cognos platform, has announced that its black economic empowerment (BEE) initiatives have received a major boost with Sekunjalo Investments Limited taking an 81.5% stake in the business.
Sekunjalo is a JSE-listed holding company with investments in healthcare, information technology and industrial holdings. Effective as of 1 September 2004, the sale will not result in a name change for Synergy; however, Sekunjalo will control the company's board of directors.
According to Synergy Computing managing director Andrew Connold, while the company had made significant progress in terms of procurement, employment equity and skills transfer, it lacked BEE credentials in two critical areas. "These are management control and ownership; we therefore have for some time sought an appropriate investor that would both add business value and rectify these shortcomings in our requirements to meet the BEE Act and the ICT charter," he says.
Having completed a number of significant projects with Sekunjalo subsidiary Health Systems Technology (HST), Connold says the two companies have identified the potential to mutually grow business through exploiting additional opportunities in the public health sector.
"HST's patient information system has been installed in several large hospitals in the Western Cape where it has resulted in significant returns; Synergy provided the Cognos business intelligence software reporting and analysis platform as an integral component," he says.
In addition to this line of business, Connold says further potential exists for working together with Sekunjalo companies Bonlife and Benmed. "With our experience in providing business intelligence solutions in the health and life insurance fields, there is good potential within the group. The most significant growth potential, however, lies in business intelligence solution provision for government to assist in the achievement of its service delivery objectives. Access to this market is anticipated as a consequence of Sekunjalo's extensive network," he says.
Cognos South Africa country manager Dave McWilliam has welcomed the deal. "Synergy has performed very well in recent years, and we are pleased that it has managed to complete a BEE transaction that adds value to its business as well as our own. Partners that are committed to transformation are very valuable to us, and we anticipate a continued strengthening of the relationship between our businesses," he says.
Synergy is now ideally positioned to continue to provide solutions to the corporate market, while Connold also anticipates an increase in business from government and parastatal entities. "In addition to our track record and vendor alliances, this transaction completes our portfolio to equip us to provide solutions to South African organisations across the spectrum," he concludes.
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Synergy Computing designs, implements and supports enterprise-wide business intelligence solutions from data extraction to corporate performance management automation.
With the recent acquisition of Sunstone Solutions, Synergy Computing has reinforced its position as southern Africa's foremost solution provider in this field.
The company's expertise is founded on more than 25 years of providing strategic information advantage. Its national presence is supported by offices in Johannesburg, Cape Town and Durban.
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