Black-owned e-business Csonke.com has acquired a 30% stake in a digital design and development agency.
The stake in Krazyboyz, for an undisclosed amount, could be supplemented later with an additional 21% stake, which would result in the new firm being majority empowered.
Csonke.com financed the deal with cash and assets to create Krazyboyz Digital, which will be held in the Csonke Holdings stable. Csonke.com, which was started in 2001 with R2 000 in seed capital, received funding from youth fund Umsobomvu.
Csonke.com executive director and newly-appointed Krazyboyz executive chairman Zibusiso Mkhwanazi says the deal marks an end to the company's search for a partner.
Growth plan
Krazyboyz Cape Town MD Andre De Villers says the company is looking to invest in the ICT arena to complement its existing portfolio. "The transaction made more sense as Csonke.com will assist the business to be more competitive, improve its systems, offerings and capacity," he says.
Established in 1997, with offices in Johannesburg and Cape Town, Krazyboyz provides digital solutions. Its clients include Foschini, Cardies, Development Bank of Southern Africa, the Pan African Parliament and PlayUkLottery.com.
Krazyboyz intends absorbing Csonke's employment equity, corporate social investment and preferential procurement policies, which will result in organisational change.
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