Black-owned technology firm Digital IQ says while it is interested in buying Altech`s Africard business, the fact that one element is not for sale will force it to re-evaluate its position.
Altech has to dispose of its Africard business, with the exception of the personalisation bureau, to meet the conditions of a Competition Tribunal approval of its merger with NamITech.
Digital IQ president and CEO Tebogo Khaas says his company submitted an expression of interest in Africard on 15 January.
"Digital IQ is also aware of advanced discussions between Altech and one other local player in the industry," he says. Labat Africa has said previously that it is in talks with Altech regarding Africard.
"Regarding Africard, Digital IQ would only do the deal if it makes business sense and would therefore only be interested in the entire business of Africard, especially its personalisation business.
"In fact, this is the only business that makes the asset attractive for Digital IQ and would be in line with the growth strategy of the company. However, since Altech has stated its intention and has obtained the blessing of the tribunal to hold onto the personalisation business of Africard, Digital IQ will review its position on Africard shortly."
Khaas says there are no black-owned or controlled companies in SA that manufacture and supply smart cards to banks or GSM network providers.
"There is also a conspicuous lack of local black-owned companies that develop their own intellectual property in this specialised sector. Card security and value-added application development is still dominated by foreign multinationals. Digital IQ seeks to change this," he says.
The company is in advanced talks with a European smart card technology group. Khaas says if the talks are successful, Digital IQ will be positioned as a serious player in SA and sub-Saharan Africa.
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