JSE-listed business solutions group Simeka BSG is creating an enterprise business solutions company, with turnover of about R60 million.
The new company, ITQ Business Solutions, is being created through the merger of part of Simeka's outsourcing capability and bespoke outsource development company Mindkey.
Simeka says it will own 50.1% of ITQ, while Mindkey will hold the other 40.9%.
The merger will take effect on 1 December.
Simeka CEO Mohammed Varachia says the venture already has a footprint in the financial sector, through a major consulting contract Mindkey has with an insurance company, and some smaller contracts in the sector.
ITQ Business Solutions will have a staff complement of 90 people.
Simeka, which is in the process of changing its name to Simeka Business Solutions Group, achieved turnover of R447 million for the year to May, up 37% from the previous year's R326.1 million.
Attributable profit for the period was up 25%, from R44.8 million to R79 million.
The Simeka share was trading at R1.20 this morning, up 1c from Friday's close, well off both its 12-month high (R1.67) and 12-month low (66c).
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