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T-Systems acquires South Africa’s Intervate for undisclosed amount

January 30, 2014 • Mobile and Telecoms, Southern Africa, Top Stories

Govender, Vice President: Systems Integration at T-Systems in South Africa. (Image source: T-Systems)

Collin Govender, Vice President: Systems Integration at T-Systems in South Africa. (Image source: T-Systems)

T-Systems in South Africa has announced its acquisition of Intervate, a local specialist provider of Enterprise Information Management (EIM) solutions.

The move empowers T-Systems to deliver innovative new solutions to business customers that encompass the full offering, including SharePoint and mobile applications. In addition, Intervate is a Microsoft-focused business, which will assist T-Systems in growing this partnership. Intervate will operate as a legal entity under T-Systems’ Systems Integration division.

Leadership at T-Systems emphasised the synergy between the two companies, particularly in terms of business culture and shared passion for innovation to drive business excellence and “build the nation”

The acquisition was described as “good for South Africa, but also for T-Systems worldwide”.

Management from both companies confirm the importance of Africa as a strategic market, but will only look to aggressively engage the continent at a later stage.

“As a small company its always a challenge to go into Africa, you take more risks. In South Africa, we have been very busy, there has been a lot of demand and there is a skills shortage. So we haven’t really had a lot of capacity that we could dedicate to Africa or globally… but Africa is certainly an area that we see a lot of growth. It has always been an aspiration of ours … we have done bits and pieces of work, but we are always worried about the risk .. you know can we sustain, can we handle the extra risk that you do take on from an Africa perspective and do we have the ability to scale quickly enough. I think with T-Systems backing us, we can certainly do that,” said Lionel Moyal, Managing Director of Intervate.

Intervate, has a national footprint and its Johannesburg office will for the short-term remain at their existing premises. However, they will move to T-Systems Head Quarters in Midrand in due course. Intervate’s customer base spans all of T-Systems’ key vertical sectors, including government and the public sector, finance and insurance, telecoms, education, IT, retail, mining and the automotive industry. This synergy will bolster T-Systems’ innovation component, enabling the organisation to expand their presence in these markets as well as tackle both new and existing markets with information management solutions.

Says Collin Govender, Vice President: Systems Integration at T-Systems in South Africa, “SharePoint is one of the most in-demand enterprise solutions today, and information management has become critical in today’s data driven world. In order for us to continue to innovate we needed to address this growing customer requirement. Intervate was the ideal organisation to bolster our key competencies and grow our Microsoft skills base. Their strategic, tactical and operational capabilities in the EIM space will integrate seamlessly into our Systems Integration business, bringing together our core offerings into a comprehensive solution for our customers and partners.”

Moyal will head up the newly created EIM business that will fall within T-Systems’ business. He adds, “Joining T-Systems allows Intervate to accelerate its growth and have a greater influence on the local South African market, whilst enabling expansion into other territories across Africa.”

Mobility is one of today’s driving megatrends and an area of focus for T-Systems. Intervate also has a strong background in the development of mobile applications, which will complement T-Systems’ mobile offering. As a provider of both licensed and cloud-based solutions, the acquisition will also strengthen Intervate’s market position, and their skills will be leveraged from a global perspective.

Says Gert Schoonbee, Managing Director of T-Systems in South Africa, “The multiple synergies between the two businesses will ensure that this acquisition is mutually beneficial for all parties concerned. In addition, our focus of ‘transform with innovation’ also reflects the ethos at Intervate, and further contributes to the success of this acquisition.”

Chris Tredger – Online Editor

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