Acquisition gives Western Cape new IT services powerhouse
Cape Town-based IT services and support firm CyberLogic is set to take a majority stake in Stellenbosch-based IT services firm Space Age Technologies with effect from 1 September.
CyberLogic founder and chief executive Edge Bisset says the acquisition of a 70% stake in Space Age Technologies for an undisclosed sum unites the biggest and second-biggest SME-focused IT services firms in the region to create a new IT powerhouse for SMEs.
"Space Age Technologies is arguably the biggest SME-focused Managed Services Provider in the country, with exceptionally advanced technical skills, particularly in the areas of high-end server monitoring and infrastructure monitoring. Both companies offer IT services to the SME market, so we have competed, but never collaborated. However, we have long respected their technical skills and regard them as superior to most other companies in the market."
As the second-largest SME-focused IT services firm in the region, CyberLogic also fields a highly skilled technical team, with its service desk and cloud offerings among its greatest strengths. A highly cash-positive concern, CyberLogic moved to acquire the majority share in Space Age Technologies to strengthen the service offerings both companies can take to market. "Our strengths dovetail well, and both companies can expect to benefit from the acquisition," says Bisset.
The two companies will field over 85 highly specialised tech experts based in Stellenbosch and Cape Town city bowl, and will retain their focus on the SME market. Bisset notes that SMEs have unique IT requirements and there are very few mature IT providers that focus purely on the SME market. As such, there is significant room for growth in this market.
For the foreseeable future, each company will operate independently and retain its own brand identity. Customers will benefit from streamlined services and access to expanded skills sets across a broader geographic focus area.
While CyberLogic and Space Age Technologies both focus mainly on the Western Cape region, both also service clients across South Africa. In future, CyberLogic may look to acquisitions that expand the companies' reach into regions such as Gauteng, Bisset says.