MICROmega has bought Rdata, which provides enterprise management systems (EMS) to local government, for R12.57 million.
The listed company says Rdata is an important addition to the products and services offered by Sebata, one of its wholly-owned subsidiaries. The holding company, which has assorted assets, including in recruitment and financial services, says Sebata is an integrated technology professional services provider that has its principal focus on municipalities, public entities and government.
MICROmega notes Sebata's EMS solution is steadily increasing its penetration into the local government sector with 41 local authorities currently using the Sebata system. Buying Rdata adds a further 16 local authorities, mostly in the Western Cape, it says.
Rdata also provides systems solutions to 30 municipalities in Zimbabwe and to a relatively minor extent in Swaziland and Zambia, says MICROmega. "Sebata sees a clear opportunity to leverage its products and services into those and other African countries," says the listed company.
MICROmega also notes National Treasury "has commissioned a critically important project, standard chart of accounts, to implement standardised business processes, financial management, and reporting across 278 local authorities in South Africa".
The company notes Sebata is actively engaged with National Treasury in the standard chart of accounts implementation and "has made a significant investment in its technology to ensure National Treasury's requirements are fully met by the much-enhanced Sebata EMS".
MICROmega adds buying Rdata makes Sebata the second largest EMS provider to local government, based on the number of local authorities. The deal will also assist other MICROmega group companies by "providing strong cross-selling opportunities for their value-added service offerings, such as their water management solutions".
The purchase price of R12.57 million was paid through a cash amount of R4.8 million and 458 000 shares issued at R17 each.
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