Alviva takes control of Synerg Group
ICT products and services provider Alviva has announced to shareholders that the JSE-listed firm will acquire 70% of enterprise software company Synerg SA, for R90 million, through its subsidiary DCT Holdings.
Alviva has increased its business exposure in the IT services and solutions space, a focus area of the company’s acquisition strategy, and the Synerg Group transaction will be an additional investment in this lucrative sector of the IT industry.
The ICT products and services provider, formally known as Pinnacle Holdings, has signed sell-of-shares agreements, which will see it become a 51% shareholder, thereby assuming control of Synerg SA, Synerg UK, Synerg UAE, and subsidiaries SynergIT and Synerg300, which collectively make up the Synerg Group.
The Synerg Group has been a top performer in its space by enabling businesses to leverage software to achieve operational efficiency in all areas of a business, from operations to human capital.
The Synerg stable is dedicated to the Enterprise Management Software suite (also known as Sage X3 and Sage X3 People) and supports global organisations through its offices in SA, United Kingdom and the Middle East.
Alviva said of the deal: “The business is invested in the Sage Enterprise product stack and has one of the largest complements of certified consultants in Africa. As a business, they are closely aligned with Sage and Sage’s strategic growth areas, enabling them to stay up to date with the latest initiatives and focus areas.”
Established in 1993 and a Sage reseller for over 25 years, the Synerg Group has earned platinum reseller status and was recognised as a top performing partner for three consecutive years: 2016, 2017 and 2018.
In a morning trade update statement to shareholders, Alviva said: “Through its subsidiary Alviva International Investments Proprietary Limited, it also entered into a sale of shares agreements to acquire 51% of the issued share capital of Synergy DWC-LLC (Synerg UAE) and SynergERP Limited (Synerg UK) respectively.”
This is Alviva’s latest group acquisition after a series of similar deals in the last two years.
In October 2017, Alviva, through its subsidiary DCT Holdings, agreed to acquire 51% of the shareholding in Sintrex for R102 million. It had an option to acquire a further 24% within two years. Sintrex is an infrastructure management company, based in SA, providing end-to-end IT solutions and services.
The company had three months earlier taken control of Gridcars. Through its 51%-held subsidiary Solareff, the company also subscribed for a 75% stake in Gridcars for R3 million. Gridcars is a Pretoria-based developer of electric vehicle charge-point software management systems and a supplier of charge points.
The acquisition forms part of Alviva's renewable energy business strategy and it believes that growing a network of charge points in SA will be the enabler of a carbon-free transport system.