Pinnacle Technology Holdings to acquire Axiz

In a market move that promises to shake up the IT industry, Pinnacle Technology Holdings Limited (PTH), a JSE listed IT Company, has made an offer to purchase 100 percent of the shares in Axiz Technology (Pty) Ltd.

The continued growth of Axiz and Workgroup, PTH’s focussed solutions distributor, has necessitated PTH to look for additional infrastructure opportunities and the existing capacity within Axiz will assist in increasing efficiencies of the two entities. The acquisition will contribute to the group’s growth and broaden its technology offering.

So says Workgroup MD Doug Woolley who adds that, by leveraging a common infrastructure, Workgroup will escalate its product offering into new markets, whilst Axiz will benefit from the increased solutions expertise, thereby driving new opportunities for its vendors and reseller partners.

“Both the Workgroup and Axiz brands are well respected in the market and the two companies have a very close cultural fit,” says Woolley.

He says that over time increased collaboration and consolidation can be expected whilst increased profitability and growth will be driven by the leveraging of:

· Increased product offering

· Increased customer reach;

· Increased geographical presence both locally and throughout Africa;

· A common logistics and warehousing infrastructure; and

· Common back office systems.

Craig Brunsden, Chief Marketing Officer of Axiz says the combined solutions offering will enable both companies to take advantage of converged IT infrastructure and cloud computing, bringing new opportunities to the vendor and reseller partners of both companies.

“PTH, Workgroup and Axiz are recognised for having evolved and grown with the IT industry over the years and an acquisition of this kind seemed the natural next step in our joint evolution going forward,” says Brunsden. “By combining the passion, creativity and broad range of vendor solutions of both companies, we believe we will continue to drive innovations that help people and organisations everywhere do business better.”

The transaction is subject to Competition Commission approval.