CAPE TOWN – AYO Technology, the country’s largest black empowerment information technology company, yesterday announced that it had acquired a 55 percent stake in Sizwe Africa Group for R165 million.
Ayo said the purchase price would be based on an entity value of R300m, based on a R70m earnings before interest, tax, depreciation and amortisation (Ebitda)
Ayo chairperson Dr Wallace Mgoqi said the group would pay 90percent of the purchase price up front with the balance settled on anticipated profits in a 3- to 5-year period. Mgoqi said the transaction would be subject to various conditions that would include the conclusion of definite agreements.
He said the purchase was in line with Ayo’s growth strategy to grow its underlying assets and operations.
“The deal will also create scale within the Ayo platforms, thereby broadening its customer base and presence,” Mgoqi said. “The transaction will also add long-term synergy and value in the businesses that we invest in.”