Pursuing its vision to be recognised as a world-class supplier of specialised technology solutions in chosen markets, UCS Group Limited has acquired the business of Virtual Systems Technology (VST) from Softline. The acquisition, effective 1 October, was settled in a cash payment of R13 million.
UCS Group chief executive officer John Bright describes the acquisition as a logical extension of UCS`s strategic focus on the retail sector and a demonstration of its growth policy.
"While the group remains committed to organic growth, we are constantly afforded the opportunity of considering potential product and business acquisitions. These opportunities are governed by the requirement that they must incorporate good, committed management as well as substantial growth potential.
"In addition, the prospective operation must be positioned predominantly in the field of software and/or services where there are opportunities for synergies within the group that can be maximised. Owned technologies, such as software packages or tools, are another advantage that we look for, along with human resource skills which should be employed rather than contracted," he says.
Bright says the VST acquisition not only meets the group`s overall acquisition criteria but also complies fully with UCS`s clearly stated strategy to focus on vertically aligned markets in the retail industry.
"VST consolidates the group`s position in the Western Cape and strengthens its presence in the fashion retail industry. The business has an attractive list of annuity-based customers and a strong team of employees with extensive skills and experience in the retail software development and computer services industry.
"VST`s pedigree further consolidates the group`s leading position in the South African retail market and its ability to leverage this experience to penetrate lucrative business opportunities in Europe and other international markets," says Bright.
The acquisition of VST brings to six, the number of UCS Group subsidiaries that are carefully positioned in chosen sectors of the retail software solutions and services market.
The other subsidiaries, Universal Computers, CCS Software, CKS (Computerkit), GAAP Point-of-Sale and UCS Software (formerly Ultimate Connection), have been successfully integrated into offering industry-leading solutions and services based on niche products and customised solutions that address the nuances and specific requirements of customers in a comprehensive range of retail disciplines.
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