MERGERS, ACQUISITIONS AND FINANCIAL RESULTS
Business Connexion South Africa Sells Two Units for R167.8m to Simplify Structure
Technology group Business Connexion (BCX) said last week it would sell two units for R167,8m to simplify its operational structure after the implementation of its turnaround programme. In 2008, BCX implemented a wide range of projects and cost- cutting measures to restore its fortunes.
The "revitalisation programme" focused on clarifying responsibilities and accountabilities, elimated duplication and cut running costs. "Given a number of events driven by the group's revitalisation programme, it was necessary to revisit and simplify the group structure," the company said.
It will sell Nanoteq and the two data centre buildings to Business Connexion Ltd, which is 79.99% owned by Business Connexion Group and 20.01% by its black empowerment partner, Gadlex. The divisions were owned by wholly owned subsidiary, Business Connexion Technology Holdings.
Nanoteq, which will be sold for R35.5m, supplies high-grade cryptographic security products and solutions. "Due to the specialist nature of cryptographic security and the limited size of the market, Nanoteq represents the bulk of the investment of the South African government in this domain," BCX said. It said the data centres, to be sold for R132.4m, would continue to be a major part of the group's infrastructure.
BCX has invested significantly in its data centres by building a services-on-demand system in preparation for the market demand. Services-on-demand allows clients to select affordable, standardised services such as flexible computing and storage as well as secure messaging and e-mail."The ability to deliver a scalable and cost-effective service is facilitated by means of shared information technology infrastructure," BCX said.
The effective date of the disposal is June 1 and it is not subject to any conditions.