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DTH acquires 51% stake in Blue Pencil

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 13 Oct 2016
DTH CEO Chris Wilkins says the acquisition was a natural choice as the companies share many clients.
DTH CEO Chris Wilkins says the acquisition was a natural choice as the companies share many clients.

Large privately-owned African software group, Dynamic Technology Holdings (DTH), has acquired a 51% stake in Blue Pencil, an SAP services specialist headquartered in Johannesburg.

Financial terms were not disclosed.

Blue Pencil was founded in 2004 and specialises in SAP Solution Manager, Staff Augmentation and Education Services.

"We are extremely excited by this deal as it opens up new opportunities outside of the SAP eco-system," says Graham Henderson, MD of Blue Pencil.

"It is a significant step forward in Blue Pencil South Africa's growth plans to increase our client base and build on the principle that the whole is greater than the sum of the parts."

Chris Wilkins, CEO of DTH, says the acquisition was a natural choice as the companies share many clients, and DTH is seeking to broaden and deepen its SAP competencies.

"DTH has grown consistently at a rate of 20% every year as a result of both acquisitions and solid organic expansion," he says.

The deal opens up opportunities outside the SAP eco-system, says Graham Henderson, MD of Blue Pencil.
The deal opens up opportunities outside the SAP eco-system, says Graham Henderson, MD of Blue Pencil.

"We have made it our business to invest in solid software services and software product companies over time, and will continue to do so over the next five to 10 years. We view Blue Pencil as a keystone to fast-tracking our SAP expertise so that our clients can reap the benefits of a one-stop shop."

The companies will be able to take mutual advantage of the international channels and relationships each has.

DTH operates mainly outside of the SAP eco-system and Blue Pencil is predominately an SAP services-focused business.

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