AccessKenya to buy Openview Business Systems

Mergers, Acquisitions and Financial Results

AccessKenya Group, Kenya’s only publicly listed ICT company, today announced that it has reached agreement with the owners of Openview Business Systems, one of Kenya’s leading IT services providers, to purchase 70% of the issued share capital of that company. The completion of the transaction will be subject to the customary required approvals.

Openview Business Systems is one of the market leading companies in offering IT solutions to enterprises and corporate customers in Kenya, with a number of blue chip customers including most of the leading banks, Insurance companies and parastatals. The Company won the CSK “IT Solution Provider of the Year” awards in both 2005 and 2006, and is also an IBM Premier Business partner, an Oracle certified partner, a NetApp Gold partner and a CISCO certified partner among other certifications. The management of Openview includes Managing Director, Henry Njoroge, previously the Managing Director of UUNET Kenya for 5 years, Chief Operating Officer, Lucy Muthoni, a founder director of OpenView and a dedicated team of over fifty personnel, many of whom have been with the company for most of the years since its inception in 1998. The two executive directors remain as senior management of the company post acquisition.

The consideration for the 70% share purchase is a combination of cash and approximately 4 million AccessKenya Group shares, together with some deferred consideration based on the performance of the business for the rest of 2007. Following the completion of the transaction, the vendors will be amongst the largest shareholders of AccessKenya Group. They have agreed to retain their shares for a minimum of one year. Under the transaction, the remaining 30% of the shares in Openview with have put and call options in the next few years allowing AccessKenya Group the option of making OpenView a 100% subsidiary of the group in due course.

Following its recent announcement of a very significant increase in half year revenues and profits for the six months ending June 30th, 2007, Jonathan Somen commented further on the financial impact of this acquisition for future performance: “The combination of the strong performance in our core business, together with the expected revenues from the Openview acquisition, mean that the AccessKenya Group will comfortably exceed One Billion Shillings of turnover in 2008.”