NamITech, the secure solutions IT subsidiary of JSE-listed Nampak, has concluded a cash and share deal worth R68 million, with electronic security and transaction specialist VELOCIT-e. The overriding rationale for the merger is to accelerate NamITech's growth in the security sector of the IT industry and capitalise on the many business opportunities in this market.
"The VELOCIT-e deal is in line with NamITech's strategic objective to strengthen its technology base and provide customers with a wider range of security and transaction focused solutions," said Rex Tomlinson, Chairman of NamITech.
Charles Laxton, CEO of VELOCIT-e said, "that while VELOCIT-e had established a successful track record in the provision of innovative cashless and electronic security solutions, our ability to exploit this technology, both locally and globally, has been hampered by limited financial and management resources. NamITech will provide us the opportunity to continue developing leading edge technology for the future."
"VELOCIT-e and NamITech share a common vision and have an enviable strategic fit in terms of products and services, target markets and customers. We therefore have every confidence that this merger will unlock value," said Tomlinson.
Laxton added that "he believes that the merger of the two companies will establish NamITech as a leading player in the South African IT security and transaction market."
The merger, will see the consolidation of VELOCIT-e into NamITech's premises in Linbro Business Park. The VELOCIT-e brand will be retained within the NamITech group of companies. The deal is subject to Competition Commission approval.