The technology services division of black-owned Ndizani Technology Holdings is to be merged with the operations of Casey Investment Holdings. Both are majority-owned by empowerment firm Black Information Technology Company (Blitec).
Blitec, which owns 71.5% of JSE-listed Casey, also owns 80% of Ndizani. AMD Business Trust and Sizo Family Trust each hold another 10% of Ndizani.
Casey is a supplier of computer equipment, business system applications and infrastructure support.
Blitec, which also owns 30% of SAP Public Services, says the aim of the exercise is to consolidate its various IT interests within Casey to provide a more comprehensive service to its customers.
In terms of the deal, Ndizani is to sell its technology services division as a going concern to Casey. The price is still to be set, based on profits achieved for the year to 28 February this year and subject to a due diligence review.
Ndizani`s technology services division operates from offices in Cape Town and Johannesburg. It supplies computer equipment and software, infrastructure support, products for business applications, software development and training services.
Its other division is a Cape Town-based contact centre operation.
Casey`s results for the six months to August last year showed an after-tax loss of R2.51 million and a headline loss of R2.4 million or 28.8c a share.
The share was untraded at 25c on the JSE this morning.
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