UCS set to snap up Argility SME unitComment on this story
A SUBSIDIARY of information technology (IT) firm Business Connexion (BCX) has set its sights on the small and medium enterprise (SME) division operating under IT solutions company Argility Group.
UCS Technology will buy Argility’s SME division for an undisclosed sum.
UCS Technology, which is a major service provider for the retail market, is set to acquire the intellectual property for the various software products of Argility’s SME division, as well as staff, customer contracts and licence agreements.
The company is set to snap up various retail applications spanning various segments, such as fuel, general merchandise, clothing, pharmacies, building supplies, fast-moving consumer goods and telecoms.
Rob Monteith, the chief executive of UCS Technology, said both companies had a long-term partnership that offered retailers world-class solutions.
“We’re excited about the transaction because of our ability to manage and deliver both the software and service requirements of our customers,” he said.
Neels van Tonder, the chief executive of Argility, said the pending transaction would enable it to continue to focus on its enterprise level retail and financial services customers and continue to develop its next generation business application technology and ICT (information and communications technology) resourcing solutions. BCX is the subject of a R2.7 billion takeover by Telkom. The deal is subject to approval from competition authorities. The company, according to Tech Central, said it hoped the sale would be finalised by December.
According to Tech Central, Telkom’s all-cash offer of R2.7bn or R6.60 a share will be put to BCX shareholders on August 11 for approval. If the offer is accepted, the parties will seek regulatory approval.
“Consolidation in IT is a reality. Telkom brings the communications and connectivity, which is critical in this country, while BCX brings all the IT skills. Between the two companies, we will be able to build on what we have today,” the company said.
Meanwhile, BCX will also be hosting MyWorld of Tomorrow Africa, which has been dubbed as the first-of-its-kind technology exhibition, in October. The event will look at the ins and outs of IT in South Africa with a strong focus on enriching communities.
According to the group, the expo will be a new platform for technology brands and businesses, and will allow visitors to experience technology solutions first-hand.
Matthew Blewett, BCX’s chief operating officer, hoped the event would bridge the gap between enterprise and the average man on the street.
BCX shares lost 0.79 percent to close at R6.30 yesterday.