Listed retail technology company UCS has bought a majority stake in CQuential, which will allow it to offer software solutions to smaller outlets.
UCS will pay R12 million to the Industrial Development Corporation (IDC) for a 49% stake and a nominal amount to other shareholders for another 7% share. There is a potential further payment of R10 million if CQuential meets certain targets.
Deputy CEO Dean Sparrow says the company has moved back to its core retail focus and has identified inventory management as a potential growth area.
CQuential provides inventory management on a software-as-a-service basis, and is a complementary fit with the international unit Aquitec.
Aquitec focuses on warehouse management and supply chain solutions, but supplies services to the larger retailers.
Sparrow says the addition of CQuential to the company's stable will allow UCS to expand offerings to smaller retailers.
CQuential is in its infancy, and only has a few customers. However, it does have a pipeline of anticipated deals and Sparrow expects to be able to grow it internationally.
The company was formed in 2005 and received an investment from the IDC in 2008. Having both Aquitec and CQuential within the group will enable UCS to offer warehouse and chain store solutions across the retail sector both locally and abroad.
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