Alviva in buyout discussions with competitor Tarsus

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Alviva group CEO Pierre Spies.
Alviva group CEO Pierre Spies.

JSE-listed technology group Alviva is in takeover discussions with competitor Tarsus Technology Group, the company announced yesterday.

The ICT products and services provider yesterday warned shareholders to exercise caution when dealing securities due to the mooted acquisition.

In a statement on SENS, Alviva, which operates through three business segments − ICT distribution, services and solutions, as well as financial services − said: “Alviva shareholders are advised that the company is in discussions regarding the possible acquisition of Tarsus Technology Group. The due diligence has been completed, and, if successfully concluded, this transaction may have a material effect on the price of the company’s securities.”

Tarsus is one of SA’s value-added technology distributors, representing global hardware, software and information security brands.

The group companies include Tarsus Distribution, Tarsus on Demand, Printacom, Tarsus Shared Services and Tarsus Debtors Finance.

If confirmed, the takeover of Tarsus will be the latest in a string of acquisitions by the group that have taken place since 2017.

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, Alviva 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.

In June 2019, the JSE-listed Alviva announced it will acquire 70% of enterprise software company Synerg SA, for R90 million, through its subsidiary DCT Holdings.

Last month, Alviva declared a final dividend of 15c a share for the year to end June, despite a 50% decline in earnings.

The company’s headline earnings per share, which were negatively impacted by the COVID-19 outbreak, declined by 50% to 149.4c.

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