Unisys Africa is hoping to announce by the end of the year that it has secured a black economic empowerment deal that will see an equity partner take up a significant stake in the company.
MD Barry Holt says the local company was given permission by its US-based parent to bring in an empowerment partner. While the local operation has suggested a stake of 30% to 35%, the details are still to be finalised.
Holt says there is still a common misperception that Unisys is a hardware vendor, despite services now accounting for 80% of revenue. He says an earlier decision to exit low-margin business and focus on areas of expertise is paying dividends, particularly as the focus helps the group avoid the problems associated with spreading itself too thinly.
Unisys also looks set to exceed its targets. "We are ahead of the plans we set for ourselves by the third quarter. There is still one quarter to go, but we are confident we will make it."
He says the market is still tough, but the group has benefited from a strategy of focusing on remaining profitable through tough times rather than on the top line, although that aspect of business is still important. The company has also been quick to take action in areas of business where it was struggling previously.
This year the company has added several new accounts to its business and Holt says the group`s strategy has proven to be successful, with a strong share price reflecting that.
Unisys Africa plans to continue to focus on its core competencies and markets as defined by the parent group, with fine-tuning for the local market.
Holt says that with the aid of an empowerment equity partner, the company will also look to expand on what it has done in government, which has so far been limited.
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