Altech drops Sh6bn bid for Kenyan firm
South Africa’s Allied Technologies said Wednesday it is no longer in talks to acquire unlisted Kenyan IT firm Symphony, a deal that Reuters previously reported could be worth up to $60 million (Sh6 billion).
Altech, a $742 million telecoms and IT firm, had been in talks to acquire Symphony and was nearing the end of its due diligence, Reuters reported last week, citing a person familiar with the matter.
“Altech was in discussions with the Da Gama Rose Group, the 100 per cent shareholders in Symphony, an unlisted Kenyan IT firm. Altech has informed the Da Gama Rose Group that it will not progress with further discussions,” Altech said in a statement.
The Da Gama Rose Group is led by prominent Kenyan businessman and lawyer Horatius da Gama Rose who enjoyed close links with the administration of the former President Moi.
The firm did not give a reason why the talks had been dropped, but Altech was hoping the deal would augment its existing business — Kenya Data Networks — in a region where it has struggled.
Altech is a diverse business whose operations include telecoms, electronics, and IT services while Symphony provides IT consulting and services including hardware, software and networking.