Hicor has acquired US-based software developer BCE Emergis for R36 million in its largest deal since changing its focus to IT a year ago.
BCE Emergis, which was 100% owned by Canadian company BCE, focuses on the development and support of software for secure file transfer and e-commerce messaging.
This is Hicor`s second overseas acquisition - the first being British-based RL Software, which Hicor bought last year. The subsidiary now trades as Hicor (UK).
The latest acquisition will trade as Hicor (US) Corporation, says Hicor chairman Renier van Rooyen.
Van Rooyen says that "excellent" synergy exists between BCE Emergis and Hicor, since the US company also focuses on business-to-business electronic messaging and file transfer.
"We are well familiar with the company`s software, its high safety factors and outstanding quality, as Hicor acted as distributor of BCE`s core product, Messageway, in both Europe and SA.
"The income generated by Messageway, which will be marketed under the Hicor banner internationally, will contribute substantially to profitability."
He adds that the takeover provides Hicor with access to a broader international client base and also the expertise and knowledge to market and sell existing Hicor products in the US, Europe, Middle East and Asia.
Hicor MD Danny Pringle says the acquisition will help the group realise its objective of generating 60% of its income offshore by 2001.
"Through this transaction the group immediately more than doubles with regard to turnover, profitability and expertise."
The deal includes a three-year restraint of trade agreement to prevent Canada`s BCE from competing directly with Hicor.
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