Software firm heads for AltX

By Nicola Mawson, Contributing journalist

Johannesburg, 16 Oct 2006

The JSE has approved a listing upgrade for Synergy, which will see it move from the Development Capital Market to the Alternative Exchange.

In addition to the listing, which JSE senior GM of marketing and business development Noah Greenhill says requires the company to comply with all the requirements of any other listing on the junior bourse, the company is in the process of acquiring another software firm through a reverse takeover.

SDT Financial Software Solutions is being bought for R50 million, which will be paid for by shares.

At the same time that the company implements the takeover transaction and restructures its share capital, it will change its name to SilverBridge Holdings. New directors will be appointed to the board and the new company will list on AltX.

BEE credentials

The company is also in "advanced negotiations" with a black economic empowerment group to acquire a percentage of equity after it transfers to AltX. "These actions will reconstitute the company as a specialist software holding company with BEE credentials, with SDT as an operating subsidiary," it told shareholders on Friday.

At holding company level, the core of SilverBridge's corporate strategy, following the acquisition, will be to build a group of niche business application software and related service businesses operating on a decentralised basis, through an acquisitive growth strategy, it says.

SDT, which will become SilverBridge's first operating subsidiary, focuses on the provision of proprietary back-office administration software solutions and related services to the financial services industry with a particular focus on the long-term insurance industry in SA and Africa.

Its listing on the AltX will be with effect from 27 November. However, the transfer and listing of 30.25 million consolidated shares of 1c each, is still subject to shareholder approval. A meeting to sanction this is expected to take place on 6 November.