Privately owned black empowerment company Worldwide African Investment Holdings has increased its shareholding in Commerce One South Africa - Distributor Operations by 6.5%.
Commerce One South Africa - Distributor Operations, also privately owned, is the sole distributor of US-based e-procurement software and e-marketplaces software company, Nasdaq-listed Commerce One Inc. Its blue chip clients include M-Web Commerce Zone (including the NME group of companies), Sasol, FirstRand and Bidvest (mymarket.com) and over 350 suppliers on its e-marketplace, MarketSite Africa.
Worldwide African Investment Holdings has increased its stake in the business from 20% to 26.5%. It acquired its original stake in the business in June 2000 and has exercised an option to increase this based on the performance of the business.
Two Worldwide directors - Phuthuma Nhleko and Thuli Zuma, have been on the board of Commerce One South Africa - Distributor Operations since March 2001 with Vuyisa Nkonyeni acting as an alternate board member.
Market successes
Commerce One South Africa - Distributor Operations has a strong implementation team, and companies like Sasol, M-Web CommerceZone, FirstRand and Bidvest are already successfully using several implementations of its e-marketplace software and e-procurement software. M-Web CommerceZone has already processed orders to the value of R1 billion.
Michael Bosman, CEO of Commerce One SA - Distributor Operations, says the increased stake in the company by Worldwide is a strategic move and adds that the company will benefit from a closer relationship with what Bosman believes is the most successful black economic empowerment company in SA.
"They are demonstrating their support and commitment to our business model by increasing their equity stake in the business. Worldwide adds a lot of value to our business beyond their shareholding and we look forward to the relationship strengthening as we consolidate our leading position in the South African market for e-procurement and e-marketplaces."
Market leaders
Commerce One South Africa - Distributor Operations has grown over the past 18 months into an organisation with close to 50 staff members with strong implementation skills in e-procurement and e-marketplaces. The company now offers a full suite of e-marketplace and e-procurement services to blue chip clients as well as associated e-business consulting services.
Worldwide African Investment Holdings executive chairman Phuthuma Nhleko says the deal further extends their reach in the IT sector - a strategic focus for the company together with telecommunications and the energy sector.
"We believe that the deal extends beyond financial investment in the company. Our continued investment in Commerce One South Africa - Distributor Operations is consistent with our strategy in the IT environment. Commerce One South Africa - Distributor Operations has done well in the past 18 months and has positioned itself well as a leader in this market," he adds.
Earlier this year Commerce One South Africa - Distributor Operations reported a successful first year in business, was servicing many of SA`s top companies and had already signed over 350 suppliers to its e-marketplaces, MarketSite Africa.
Bosman adds that the deal makes good business sense as it will continue to give Commerce One South Africa - Distributor Operations a credible black empowerment profile and believes that further growth in the public sector will be possible for the company.
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