DURBAN - Allied Electronics Corporation (Altron) announced that it has acquired iS Partners through its subsidiary, Altron TMT, for R225 million.
Altron said the deal would include the acquisition of Karabina Solutions, a Microsoft solutions business, and Zetta Business Solutions, which provides data advisory services.
It said the transaction was subject to approval to Competition Commission.
Group chief executive Mteto Nyati said the acquisition would enable Altron to create a Microsoft-focused business to target cloud computing and data analytics. “The acquisition will add scale and a new suite of solutions and capabilities, enabling customers to digitally transform their businesses through Microsoft technologies,” Nyati said.
Altron has been on an acquisition spree recently, as it continues to spread its wings in the international markets. In July last year, the group bought Fleet Logistics, an Australian fleet management business based in New South Wales.
Peter Takaendesa, a portfolio manager at Mergence Investment Managers, said the iS Partners acquisition was relatively small, at less than 5percent. He said the size of the transaction had made it easy for Altron to disclose its transaction on a voluntary basis.
“However, the acquisition is in line with Altron’s stated strategy to focus on the ICT market at home, and in select international markets such as the UK. We therefore expect Altron to continue to exit its manufacturing operations and investing the proceeds into the ICT market as well as reducing debt,” Takaendesa said.
Grant van der Wal, iS Partners chief executive, said the partnership with Altron would make the company relevant to all customers.
“This is a key announcement for the South African IT industry, which needs a partner that brings business scale in data analytics and cloud computing; with this deal we aim to be that partner. Karabina Solutions prides itself on being relevant to its customers and their business requirements, which aligns to Altron’s core purpose of providing innovation that matters,” Van der Wal said.
Karabina Solutions, which comes with the acquisition of iS Partners, has a proven pedigree in its own right. It consists of 200 employees and is the recipient of more than 70 local and international industry awards.
Karabina provides its customers comprising of more than 300 companies from South Africa and Africa with competencies to define a digital transformation strategy and Microsoft technology roadmap to help them achieve their goals and strategies in the context of an increasingly digital global environment.
Zoaib Hoosen, a Microsoft South Africa managing director, said iS Partners was a Microsoft Gold Certified Partner with a track record of more than 17 years in Africa.
“We already have an existing partnership with Altron through its subsidiary, Bytes Systems Integration. Bringing iS Partners into the Altron fold strengthens our partnership and will accelerate our customers’ digital transformation journey in South Africa and the continent,” Hoosen said.
Altron shares rose 0.74percent on the JSE yesterday to close at R14.90.