Rivonia-based Torque-IT and Cape-based Information and Technology Training Centre (ITT Centre) will split brands in the Gauteng, KwaZulu-Natal and Cape regions. This decision is said to be based on different markets, branding and price sensitivity.
CEO Gary Chalmers announced the acquisition of the ITT Centre when Torque-IT was launched at the beginning of the year. At the time, he described the merger as a "perfect match" because of ITT Centre`s presence in Cape Town and positioning in the market.
He now says: "The markets are completely different, and we have found that the ITT Centre brand has tremendous value in the coastal regions, while Torque-IT has a very strong corporate presence inland."
Torque-IT believes the decision is a means of differentiating the brands, making them individually stronger while retaining a working relationship. National deals will still be available and, through the new arrangement, will allow for flexibility and competitive pricing while still maintaining a national presence.
According to Jenni Mulligan, joint MD of ITT Centre`s coastal operation, the company has noticed a drop in interest from the market over the last two months. She says this was due to market reaction to the key issues of name branding and pricing. The brand split with Torque-IT was not product-related as the companies share similarities in this regard.
Mulligan says there would be no serious changes from a business point of view and the split would have no impact on further relations as the companies have a strong business relationship.
"This is perfect for all of us. We move forward with a strong strategic alliance in Torque-IT, while retaining the ability to maintain separate offerings and pricing models - a key factor in maintaining a successful coastal training business."
According to a statement released by Torque-IT, the high-end technical training brand will continue to offer Cisco, 3Com and Microsoft courses, while ITT Centre will address the coastal need for technical training such as A+, Network+, MCSE and MCSE.
In the statement, Mike Hennesey, executive director of Mustek Electronics, of which Torque-IT is a division, says: "Timing for this deal is perfect for us. With our Taiwanese listing around the corner, we are really keen to show our diversity in services while maintaining a simple and highly competitive business model in this regard."
Craig Ridgard, MD of the Zone Computer Career Campus, says the Zone Campus brand will continue to operate nationally, using the facilities and staff of ITT Centre and Torque-IT where necessary.
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