Smacsoft shares will delist from the JSE tomorrow (Friday), following the company's acquisition by London Stock Exchange-listed AFA Systems plc.
Smacsoft says this is the first step in fulfilling its strategy to gain a global footprint for its SA-developed investment management software.
In terms of the AFA acquisition, minority shareholders in Smacsoft will be paid 70c a share, a 20c premium on the company's listing price. The share closed at 69c yesterday.
Smacsoft MD Neil Hampton says the delisting opens the way for Smacsoft's products to penetrate international markets and, with the two other companies within the AFA Systems group, to start building synergies, integrating and restructuring management, software development activities and sales operations.
AFA Systems, together with the recently acquired companies DART UK and Smacsoft, will offer comprehensive mission-critical systems across treasury, capital markets, risk and investment management to a 105-strong client base in 20 countries, before embarking on any further expansion activities.
Hampton says becoming part of AFA Systems enables Smacsoft's products to leverage off the group's existing international infrastructure, distribution channels, and manpower.
The Smacsoft name will disappear and all products will fall under the AFA Systems banner, but product research and development will still be based in Cape Town, complementing AFA Systems' software developers in Johannesburg.
Hampton says the group wants to sign up a major investment management client in London's City by the end of the year, and is aiming at 18% of Smacoft's product revenue coming from international sales over the medium term. The international sales teams will be in place by April 1.
In terms of the acquisition Smacsoft's directors retain their functions but, as group activities merge and expand, so will their responsibilities. Hampton will be MD of the investment division. Business development director JB Maree expands his sales and marketing activities to include prospects in Europe, the Middle East and Southeast Asia.
Hampton believes that Smacsoft's SA-based clients stand to benefit from exposure to international technology and asset management trends through the products' exposure to a wider marketplace.
"In many respects our products, such as our front-office solution, our internet-based reporting and client-relationship products, are leading edge and will find a ready market in Europe and the Middle East. And InterLink, our multi-manager product is poised for great things as this sector of the market is starting to gain ground in Britain."
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