Dialogue secures Verge merger

Johannesburg, 14 Jan 2008

AltX-listed call centre operator Dialogue Group will "initially" pay R47.5 million for Verge Management Services.

Verge provides consultancy and business process outsourcing services to the public sector and has interests in various outsourcing contracts.

The transaction includes Verge's 50% shareholding in Sibize, but excludes its 50% shareholding in Siyandza. Dialogue currently holds the remaining 50% interest in Sibize.

In a notice to shareholders on Friday, Dialogue said the deal was in line with its expansion strategy and its desire to rapidly expand its services into the public sector market.

The first part of the purchase price will be settled in a mix of shares in cash, it said. A second amount, relating to various outsourcing contracts, will be determined after the release of both companies' audited financial results.

The purchase still has several conditions precedent. These include the conclusion of restraint agreements with Glenda White, Nkateko Sibiya and other key personnel; an undertaking by the parties that the supplier agreement between Verge and Sibize remain in place irrespective of ownership changes; and normal regulatory and JSE approvals.