Financial

EOH goes ahead with Atos KPMG deal

Read time 1min 40sec
EOH`s acquisition of Atos KPMG Consulting is going ahead, with the parties reaching agreement on the deal, which has been valued at R20 million.

EOH announced early last month that it had proposed buying Atos KPMG, which is owned by KPMG Services and the KC Trust. All regulatory and other conditions have now been met.

EOH CEO Asher Bohbot has said the deal will almost double the group`s business as the two companies are similar in size. It will also take EOH into new business areas, as Atos KPMG`s focus is on the financial service and public sectors. EOH has traditionally focused on commerce and industry.

"The key for us, of course, is to retain the equity that sits in the [Atos KPMG] brand," says EOH director Rob Sporen. "That remains important. But from an operational point of view we become one."

Sporen says EOH will remain the listed entity. Strongly branded software operations such as Softworx and Futuristix will also retain their branding.

"It`s a major opportunity for us. It gives us an opportunity to provide the full lifecycle kind of services that we have always aspired to, and the Atos KPMG Consulting brand gives us that in the business consulting space. It is very difficult to build your own brand."

EOH says the R20 million purchase price will be paid in cash by no later than 1 February next year. It will carry interest at prime from 1 September until the settlement date. However, the price will be adjusted based on the recoverability of Atos KPMG`s accounts receivable.

Bohbot said last month that the group was committed to black economic empowerment and had earmarked a 25% equity stake in that regard.

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