Durban - CSG Holdings has entered into a deal with the RTT Group for a 100 percent of its subsidiary, Revert Risk Management Proprietary, for a cash consideration of R100 million, included certain moveable assets.
Chief executive Pieter Dry said this acquisition was to add diversity within the organisation.
“We have been struggling to get decent acquisitions in this line of business. We have always wanted to boost the security business in our portfolio, so we are happy that we have managed to get one that will fit in within our business,” said Dry.
Revert conducts the business of risk and security management solutions.
CSG’s current strategy focuses on expanding into service delivery businesses that are more technology based with a higher barrier to entry than its existing services.
Dry was confident that the deal will get Competition Commission approval in the next few months. Revert reported a profit after tax of R13.5 million for the year to end August.
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CSG said its other recent acquisition in the security division, Stallion, added substance to the alarm monitoring and armed response unit, while the addition of Revert will result in CSG becoming a prominent mid-sized specialised security and risks services provider in Gauteng.
It has the potential to expand to other provinces like KwaZulu-Natal and the Western Cape.
CSG reported in November its operating profit grew by 32 percent to R61.32 million for the six months to September.