Johannesburg, 29 Jan 2004
Black IT company Motswedi has signed an agreement to acquire a 26% stake in IFS Defence SA (formerly Paradigm Systems Technology), a wholly-owned subsidiary of IFS Defence UK, specialists in defence information solutions, for an undisclosed sum. Under terms of the agreement, Motswedi has the option to acquire a majority stake of 51% within two years.
The deal positions Motswedi to bid for large-scale IT projects within SA`s defence industry currently in a phase of modernisation and renewal.
IFS Applications is a broad software suite with components which include IFS Financials, IFS E-Business, IFS Sales & Support, IFS Engineering, IFS Manufacturing, IFS Distribution, IFS maintenance and IFS HR. IFS Applications for defence spans the complete product lifecycle, delivering comprehensive in-service logistics solutions in accordance with the latest defence standards and using world-leading Web technology to share information with suppliers and operators.
IFS Defence supplies its software, IFS Applications, into the defence and affiliated industries, where it is designed to meet the rigorous logistical, support and maintenance demands involved in the lifecycle management of the broad range of defence equipment. Among the current users of IFS Applications are many of the leading defence suppliers and arms of services around the world.
The 70-man local company also has in house resources to provide international pre sales, implementation and go live services that include project management, business and application consulting, software engineering and testing.
According to Motswedi`s CEO Tebo Matsoso, the deal fits neatly into his company`s acquisition plans.
"Part of Motswedi`s goal is to build competencies and capacity to handle large and complex projects. In terms of our acquisitions, we are looking at businesses that bring exclusivity in terms of product and intellectual property.
"IFS Defence SA meets those requirements and is ideally poised to address the broad spectrum of information technology needs of both the defence and affiliated industries, locally and abroad," he said.
IFS Defence SA`s solutions focus on the optimisation of in-service costs and address today`s demands for greater financial and management transparency within the defence and affiliated industries. According to Simon Dowler, CEO of IFS Defence Ltd UK, the deal with Motswedi cements the company`s presence in SA, and affirms its faith in and commitment to the local market.
"We are extremely pleased to have Motswedi on board as shareholders. The company has a long and successful history in SA`s IT sector, and we look forward to a very successful partnership going forward."
Since its establishment in 1994, Motswedi has been involved in the design, development and implementation of a number of strategic and national projects ranging from the South African Integrated Justice System, the National Lottery, provincial and local government systems.
Late last year, Motswedi acquired a controlling shareholding in JMR Software, a move which positioned the group to provide end-to-end solutions, especially for large government and corporate IT projects.
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