Industrial IT company Streamworks says it will acquire Logicon, a Durban-based process control and automation closed corporation. The deal carries a maximum price of R3.1 million in cash and shares.
Previously a supply chain manager known as Mostert & Kleyn, Streamworks listed in May last year.
Logicon acts as systems integrators for Wonderware and Schneider Electric, and writes software solutions in-house.
Streamworks CEO Russell Kleyn says the acquisition is partly meant to extend the footprint of his company, although it already has an office in Durban. "We were fairly thin spread there. This will really boost us in the Natal market." According to Kleyn, about 30% of the deal is tied to a profit warrant.
Logicon operates in the lower end of the industrial IT sector, and Kleyn believes Streamworks can offer clients entry to the blue-chip side of the business. Logicon will be completely folded into the Streamworks KwaZulu-Natal business, he says.
Kleyn says he is quite happy with the Streamworks share price, which has reached highs of 100c recently. "There is quite a bit of competition in this market," he says. "Everyone has been looking at us to see if we will live or die. It seems we will survive, and that has made acquisition talks a lot easier."
According to Kleyn, Streamworks is considering other acquisitions in the small to medium range. "For the next while we want to consolidate our market."
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