Nedcor`s latest foray into the IT sector sees it taking a 25.1% stake in The IQ Business Group for R142.4 million.
The financial services group will acquire its interests through the subscription of new shares. Nedcor has an option to increase its stake to approximately 45.1% after two years.
The IQ Business Group focuses on developing and implementing technology-enabled business process solutions for the financial services, healthcare and other industries.
Richard Laubscher, CE of Nedcor, says this strategic investment in The IQ Business Group cements an important partnering relationship. The IQ Business Group has a large skills base, particularly in the financial services sector, at a time when such intellectual capital is at risk of becoming in short supply.
Johan Roets, CE of The IQ Business Group, says the investment will see an additional 250 people employed at the company. He does not foresee the capital injection being used for an acquisition spree.
"The deal is a huge incentive for us to perform as it is warranty-based. We have always been a company that will not just jump into acquisitions. We will be using the cash from the deal to further our development of new and exciting technology that we may have not been willing to risk before," says Roets.
"From an internal perspective, IQ and Nedcor`s way of thinking is strongly aligned and Nedcor integrates with our `partnering client` ethos, strong focus on delivery, and desire to take risks with our clients," adds Roets.
Nedcor says it will commit a significant amount of projects to The IQ Business Group over the next two years.
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