Square One Solutions Group has acquired Structured Infrastructure Solutions (Pty) Ltd. (SIS) for R12,5-million as a key element of its strategy to drive growth and compete in higher value, higher margin business areas while reducing its dependence on its traditional channel business.
The purchase price will be settled by the issue of Square One shares. Square One has successfully concluded a number of acquisitions over the past five years and CEO Craig Alexander said the purchase of SIS sets up a R60-million a year infrastructure, electrical, cabling and power solutions business that has the potential to grow to R100-million during 2008.
SIS is a communication cabling, Wireless and Micro Wave consultancy business and a highly respected player in the infrastructure and power solutions space, predominantly focused on the Gauteng & Kwa-Zulu Natal region. Total Turnkey Infrastructure sums up SIS's offering. They have been in business for more than 10 years and hold major contracts with leading enterprise and blue chip clients.
"Current market conditions, extended management experience and expertise, coupled with the Square One national footprint will see the SIS acquisition well placed to capitalise on the current and future opportunities in infrastructure, electrical and power solutions as well as in cabling and communications." Alexander says, "we have the skills, the equipment, the technology and the know-how to deliver tangible value in this demanding sector of the market on a national basis."
"In order to meet our growth plan, we required a well established, national partner with aligned synergies to be able to drive the process," said SIS managing director, Clinton Cowley. 'The fit with Square One is perfect - there's no overlap at all. Square One also has a seven-year track record in power and infrastructure solutions and is an APC-MGE Gold Partner which means that we can expand our national reach, while Square One gains increased delivery capacity to meet its growing client needs."
As a component of the SIS acquisition, a wholly-owned subsidiary of SIS, specialising in industrial coding and marking solutions, will be unbundled as part of the integration process and re-integrated into Square One's Industrial and Manufacturing business. Cowley said this will open further opportunities for Square One, which is already regarded as a dominant player in this market
Alexander said the SIS acquisition positions Square One to further its strategic intent of moving away from the "ever commoditising technology distribution market" to being one of the dominant players in the South African SME market for infrastructure, electrical and power solutions, industrial coding and marking, unified communication solutions and rental finance solutions.
"Since the Square One Group began the transition process to an applied technology solutions provider in 2003, we are now in the distinguished position where we know what we are good at and where we can add value in our selected target markets. With the continued support from our partners and valued clients, the Group looks forward to a strong performance in 2008.
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Square One Solutions Group is listed on the Software & Computer Services sector of the JSE Limited. It focuses on providing niche, vertically applied technology solutions, has a national footprint and more than 22 years of experience in the South African market. The group's primary solution offerings encompass law enforcement and authentication, industrial printing coding and marking, infrastructure and facility solutions, system integration services and telecommunications and service provider solutions, all supported by a tailored suite of finance and leasing solutions and services. The key target market is enterprise, SME, corporate and government clients and the group focuses on coupling innovation, technology and service to achieve value for clients as well as superior returns and earnings growth for shareholders. For more information visit www.sq1.co.za
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