System integrator Business Connexion, through its UCS Solutions (Pty) Ltd division, has finalised its 100% acquisition of ICT management specialist firm Integr8 IT, part of the Integr8 Group, for an estimated R126 million. The initial acquisition was pending an approval from the Competition Commission, which has now confirmed that all conditions of the transaction have been met.
The total purchase consideration will be settled through an initial cash payment of R56 million, with the balance of R70 million payable as earn-out payments, over three years.
Integr8 IT is one of the largest privately owned ICT managed services companies on the African continent. It was established in 2001 and is a leader of annuity based infrastructure management and managed services to the mid-market corporate throughout South Africa and Africa.
The company owns and operates the only African based Nerve Centre®, a digital hub of people, technology and process, that regulates, monitors and maintains the technology infrastructure for many leading corporations.
“We’re pleased with the finalisation of the acquisition of Intergr8 IT because we already have a 28% market share of the retail IT services market share in sub-Saharan Africa. Intergr8 IT complements our growth strategy because it provides us with access to markets not historically serviced by Business Connexion. We look forward to a fruitful relationship.” said Jane Canny, Business Connexion Group Executive for the UCS Division.
“This deal makes real sense to Business Connexion and Integr8 IT, as well as our respective personnel and clients. For the first time in South Africa there is a single company with 7,000 highly skilled personnel that span the continent, which scales the delivery of its services from the mid-market corporate to enterprise space. This is a unique and compelling offering for our joint customers, who are able to experience the benefit of Africa’s largest IT company”, says Robert Sussman, Joint Founder and Joint CEO Integr8 IT.
The broader benefits for Business Connexion include additional infrastructure and software sales can also be facilitated through the business’ Technology Division while Integr8 IT’s Nerve Centre® also complements and extends the Group’s Connexion Zone strategy.