CompCom approves Gijima, T-Systems merger

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Maphum Nxumalo, Gijima group chief executive.
Maphum Nxumalo, Gijima group chief executive.

The Competition Commission (CompCom) has unconditionally approved the acquisition of T-Systems South Africa (TSSA) by Gijima.

“The commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The commission further found that the proposed transaction does not raise any public interest concerns,” says the CompCom.

In October, Gijima announced its desire to takeover TSSA but the deal required approval from the competition regulator.

TSSA, owned by T-Systems International, the IT services arm of German-based Deutsche Telekom, has been providing ICT networks, applications and systems to South African companies for over 20 years.

The acquisition is the result of T-Systems International’s strategic review of its global portfolio and its decision to refocus on its core markets in Europe and the Americas.

With the transaction, Gijima says it will have access to international IP, expertise and best practices, while ensuring its current and newly-acquired clients receive top innovation, best service delivery, business efficiencies, security know-how, and lastly, securing numerous jobs from the impact of COVID-19.

Gijima says the deal will position it as the largest black-owned ICT company in Southern Africa, with about 500 new employees joining in March.

“The acquisition of the T-Systems business includes about 500 highly-skilled staff members and a Tier 3 data centre, which will enhance Gijima to be the prominent mainframe IT data services giant in Africa. These services will now be coupled with Gijima’s existing cloud computing and digitalisation offerings,” it notes.

Group chief executive Maphum Nxumalo comments: “The synergetic nature of this deal, at a time when ICT is playing a major role in the new normal ushered in by COVID-19, puts Gijima at the forefront of the digital era, fully empowered to deliver world-class services and solutions in cloud enablement, AI, cyber security, IOT and innovative digitalisation transformation.

“We are further encouraged and thankful to Deutsche Telekom for having concluded the historic sale to a 100% black-owned and -managed company that enhances transformation in our country.”

Gijima’s acquisition of TSSA comes after a successful turnaround strategy by the company, which focused on “implementing an organic growth strategy to enhance its value offerings by working with new clients, highly-skilled staff members, and strengthening its partnership with global OEMs, IT systems and solutions”.

Gijima also acquires TSSA Cybersecurity Security Operations Centre and staff certificates, allowing access to a wider reach of companies.

It remains open and keen to make further strategic acquisitions that will enhance its value proposition, says the company.

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13 Aug
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