NetActive buys MB Tech call centre

Johannesburg, 29 Oct 2002

NetActive, the JSE-listed Internet service provider (ISP) which sold off the last of its clients in July, has bought outsourced call centre business Call Centre Nucleus from MB Technologies, the group about to delist.

The value of the deal was not disclosed.

NetActive listed as an ISP in 1999 but sold its dial-up subscriber base to rival M-Web for about R40 million and in July sold its remaining business clients to Tiscali World Online for R32 million, leaving it with a cash pile of nearly R50 million despite operational losses.

The remainder of NetActive consisted largely of NetFlorist, the online flower retailer which reported that it had reached break-even in April, but the company said it would concentrate on developing an outsourced call centre business. The sale to World Online included a proviso that would make it NetActive`s anchor tenant.

NetActive says the acquisition positions it as the largest outsourced contact centre service provider in the country.

"By the end of 2002 we will have moved this business into a new state of the art facility with a capacity of over 300 seats from which we will be well positioned to proactively pursue additional local and international outsource contracts," says CEO Lawrence Brick.

The company also plans to rename itself CCN Holdings Limited to "better reflect the core focus of the group".

Call Centre Nucleus was one of the small businesses earmarked for sale or management buyout as parent company MB Technologies plans to delist from the JSE with a controversial buy-out of minorities. It was incubated in MB Worksoft, the group`s software and services division, and was earlier this year reported to have "developed strong international prospects" that would be a major contributor to Worksoft`s profitability.