JSE-listed Usko which has moved from just of R150million market capitalisation to over R1billion in nine months has acquired Blue Sky Networks, South Africa`s third largest networking company. The multi-million acquisition solidifies Usko`s growing position in the IT market and confirms its presence as a mainstream player in the R1,5bn-a-year network market. Blue Sky Networks has an annual turnover of R110million. Its acquisition will both boost Usko`s revenues and confirms and consolidates Usko`s strategic direction, which is to be a broad-based IT group. "There was a natural and obvious synergy between Blue Sky Networks and Usko. This synergy comes from shared cultures and common vision," says John Beck, USKO CEO "Both parties will benefit significantly. Usko is represented at almost the entire Top 200 South African corporates. Blue Sky Networks, which will continue to operate as a separate company, will gain access to that client base. In turn, Usko will penetrate deeper into its existing client base than has been possible to date." Blue Sky the recipient of many industry awards, including more recently the Most Admired IT Company in the fields of Networking and Integration Services, Innovation, After Sales Service, and Quality of Sales Approach has a reputation for great technical skills and exceptional customer service and is viewed as a network business integrator rather than a box-dropper, says chairman Tom Pegrume. "Our view, which is shared by Usko, is that the network is an enabler of infostructure, rather than infrastructure. By becoming part of the Usko group we are able to jump a curve in getting to the next level of our business, rather than doing our own listing." Blue Sky Networks, with headcount of 120, will continue to be headed up by Pegrume and trade as a separate entity, but will leverage the competencies of the group. It is not anticipated that there will be any rationalisation at either company as a consequence of the acquisition, to the contrary a surge in Blue Sky is anticipated on the back of Usko`s strenght. Payout of cash and shares will be dependent on the group achieving revenue and profit targets. Pegrume believes that by joining the Usko Group, Blue Sky will jump the curve in terms of achieving their strategic intent in delivering the next generation of intelligent networking solutions. Usko`s acquisition of Blue Sky Networks follows on: * A joint venture with Old Mutual to create an application development company which is targeted to generate revenue of R300m over the next five years. * The acquisition of 100% of Mike Bergen and Associates, ENZA and MediSwitch. Beck sees Blue Sky Networks as adding R10m to R20m profit before tax in the next fiscal year. He says networking remains the fastest growing sector of the IT market, and it is Usko`s vision to make Blue Sky Networks the dominant player in this market. Looking forward, Beck says Usko which has now positioned itself in all of the top five growth areas in the technology field has significant potential to grow both organically and through acquisition as it fulfils its industry vision.
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