Listed ICT company the UCS Group says it will sell its 60% stake in Tactical Software Systems (TSS) Managed Services.
UCS says it has decided to sell its stake because it wants to focus on its core competence of providing software, solutions and services to the retail value chain.
The TSS Managed Services business unit focuses on providing IT services specifically into the public sector, and is the largest unit within the UCS portfolio without a retail focus.
Deputy CEO Dean Sparrow explains that the company was not able to integrate its stake in TSS Managed Services. In addition, due to its focus on the public sector, the unit needed to be black-owned. As a result, he says, it will be sold back to TSS from next month.
The entire deal is worth a maximum of R125 million, assuming TSS Managed Services meets certain targets.
TSS has been operating in SA since 1997 and has developed into a multifaceted, multi-disciplined ICT company. The company is indirectly wholly owned by empowerment groups.
During the past 12 years, TSS has diversified its operations into three core lines of business and is focused on ICT infrastructure solutions, e-procurement and digital entertainment. The company owns 40% of TSS Managed Services, with UCS holding the balance. TSS Managed Services is housed in subsidiary UCS Solutions.
After the sale, TSS's stake in UCS and UCS's empowerment status will remain unchanged. Sparrow explains that the initial deal with TSS saw the empowerment group end up with just under 10% of UCS, and this will not change.
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