The multimillion-rand acquisition of Torque IT by the Kelly Group will facilitate reciprocal growth for both companies, strengthening both their positions outside SA.
Torque IT CEO Mthunzi Mdwaba says Torque IT has clients in 23 countries other than SA, including franchises in Kenya and Angola. Furthermore, the company has partnerships in Nigeria and Ethiopia, and is setting up operations in Zambia.
"We now have a Big Brother, so it is easier to set up operations, which is normally very costly," says Mdwaba, adding that the financial backing that comes with the deal will allow the company to enter new markets proactively.
"We will no longer have to wait for our clients to pull us into new markets."
Mdwaba explains that Torque IT intends to set up "brick and mortar" operations in Nigeria, Zambia and Ethiopia, in the new future - leveraging its relationships in the telecoms and financial services sectors, among others.
Torque IT has formed strong working relations with companies such as MTN, Telkom and CelTel, as well as telecoms operators in Ethiopia and Namibia. In the financial services sector, Mdwaba say the company works closely with Standard Bank, Nedbank and First National Bank, but will now be able to leverage off Kelly's relationship with Absa.
"Expanding the business is important, as we need to respond to clients' expectations."
The deal, worth about R38 million, is subject to Competition Commission approval, and Mdwaba says he will take on a senior role at group-level within Kelly. However, the Torque IT brand will be retained and the company will continue to function as it has.
He explains that the Kelly Group is expected to benefit from Torque IT's relationships with the public sector, where its involvement had not been extensive until now.
The Kelly Group previously identified the ICT sector as a target market and the acquisition of Torque IT would support its growth objectives in this sector, it said.
The acquisition would also provide it with a source of potential candidates that are honed by the Torque Career Campus through learnerships and/or internships, and it would complement a new ICT division created by the group's flagship brand, Kelly.
"Skills development is an immediate adjacent to recruitment and placement. We realised we are weak in the area of IT and Torque IT, in terms of its organisation and culture, is a great fit for us," says Kelly Group CEO Grenville Wilson.
Mdwaba says the deal will have major benefits for all Torque IT stakeholders, including its staff, clients, partners and the community.
"This deal is excellent for us. As a company that stared death in the face seven years ago, I can say we are really proud of what we have achieved."
Related story:
Kelly Group buys Torque IT for R38m
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