TSS Business Services (TSS BS), a division of privately-owned BEE group Tactical Software Systems (TSS) has acquired 100% of SAP Services partner Quartet for an undisclosed cash sum. The deal sees Quartet and TSS Business Services form a powerful combined entity in the SAP implementation, integration, training and consulting market space, offering the services of over 70 experienced consultants and enough capacity to cope with the largest of customers.
"The combination of TSS BS and Quartet is a major differentiator in the South African market," says Danny Mackay, founder and chairman of TSS. "Joining with Quartet gives us a full suite of services in the SAP space - from strategy through to project management, full functional consulting, training and support."
TSS Business Services was founded four years ago and has grown through strategic acquisitions since then to be a significant local empowerment partner of SAP. Quartet provides consultative solutions to the ERP market. Its three main business areas are SAP consulting, Project team and End User training, and Application Support. According to TSS Business Services CEO Dion de Jong, the two companies are a good fit.
"TSS Business Services are similarly-sized organisations with a good culture fit and not many overlapping areas," he says. "There is lots of integration at the operational level and plenty of opportunity in our combined customer bases."
Together TSS BS and Quartet boast a considerable number of blue chip clients including City Power, Coca Cola, Amka, Nissan, Standard Bank and Distell. TSS services business operates in the aerospace, manufacturing, pharmaceutical, electronics and mining industries.
Quartet MD Christo Pieters is confident that the deal will bear fruit soon. "We are already operating at combined capacity," says Pieters. "This shows how well the two organisations are working together. Quartet has strong skills in training, consulting and application support, as well as very good capacity to execute projects. Now that we are BEE-compliant, we see considerable opportunity - both in local government and in our combined client bases - to deliver value through training and return on investment." Quartet's skills development will also enhance TSS's reputation as a BEE role model, adds Mackay.
"TSS is already far ahead of SAP's requirements for empowerment. But the biggest problem with skills development is that you also need real business skills on top of the purely technical training. Quartet's training expertise will give our candidates the full range of what they need."
Quartet has offices in South Africa, the United States of America and The United Kingdom and also serves clients in many other countries. According to de Jong, the success of the deal will not be driven by any global plans as yet, but that South Africa could serve as a base for local development that can be exported.
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