JSE AltX-listed SilverBridge Holdings has completed its acquisition of 51% of Ones 'N Zeros Professional Services for R11.1 million, as all conditions precedent have been met.
The settlement of the transaction is 50% in cash and 50% in shares: SilverBridge will issue 1.98 million shares at an issue price of R2.80 a share to fund the transaction. Fifty percent of the cash payment was made on the effective date of the transaction, with the balance to be paid when Ones 'N Zeros has met its profit forecasts.
SilverBridge has an option to buy the remaining 49% stake in the business.
Ones 'N Zeros is a complementary company to SDT Financial Software Solutions, until now the only company in the SilverBridge group. Ones 'N Zeros' primary business is systems implementation consulting in the banking sector, while SDT has its own software solutions for the life assurance market. The skills base of Ones 'N Zeros permits SilverBridge access to the consulting sector of the life assurance market, while Ones 'N Zeros is now able to expand out of its traditional market into life assurance.
"Ones 'N Zeros brings 30 skilled staff and a 12-year track record of successful delivery to SilverBridge," says SilverBridge CEO Jaco Swanepoel. "The company has shown consistent revenue growth and profitability, and its success is based on delivering projects on time and within budget.
"Ones 'N Zeros will enhance the group's earnings and profitability," adds Swanepoel, "and represents the first step in our stated strategy of growing through acquisition as well as organically."
According to the published pro forma effects, had Ones 'N Zeros been incorporated in the group at the beginning of the financial year ended 29 February 2008, it would have boosted earnings per share 11.43%.
"We translate business strategy into IT strategy for customers in the banking sector," says Ones 'N Zeros CEO Sandra Duetsch. "We ensure that our clients maximise the benefits from their IT investment. SilverBridge represents an ideal fit for us, as we can leverage our experience to enter new markets. There will be significant intellectual capital transfer between our companies as we both broaden our market exposure."
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