JSE-listed Sekunjalo Investments, South Africa's top empowered company in 2006, today announced a further acquisition in its ICT division as it prepares to list the division on the JSE in the second half of 2007.
Sekunjalo has acquired 50,1% of Saratoga, a software and services company. Sekunjalo will pay 50% of the acquisition price for Saratoga in cash on completion of the transaction and 50% against warranted profits being achieved over the next three years.
Sekunjalo deputy chief executive officer, Norman Noland, said Saratoga would be placed alongside FIOS and Synergy Computing in the group's ICT stable, thus lending weight to Sekunjalo's ability to sell comprehensive ICT business solutions as opposed to products.
"Collectively the operating businesses in our ICT division have a client base that covers the majority of South Africa's large corporates. We see significant upside in our ability to cross sell products and solutions into the combined client base," he said.
Noland said this augured well for Sekunjalo's stated strategy of unlocking value at group level by separately listing the ICT division in the latter part of 2007 or early 2008. The group's ICT interests are currently held in Sekunjalo Informatics and Telecommunications Africa (SITCA), a wholly owned Sekunjalo subsidiary.
"A SITCA IPO is still firmly on track, boosted by ongoing solid performances at our existing ICT companies, and strategic acquisitions such as these announced today," he said.
Saratoga is active in the development of human resources, mobility and callcentre technology.The company, which is part of the Saratoga Group, has a number of South Africa's top companies on its client list. The group employs 80 staff in South Africa, the UK and the USA to support the development, sales and implementation of new and existing applications.
Saratoga MD, Anthony Robinson, said his firm would benefit from Sekunjalo's peerless BEE credentials.