Telkom Business, BCX to merge operations

Mergers, Acquisitions and Financial Results

Telkom will merge its enterprise-focused Telkom Business unit into IT group Business Connexion, which it acquired last year for R2,7bn.

The merger will create one go-to-market brand and avoid the creation of parallel organisations and the duplication of resources, said Telkom CEO Sipho Maseko.

The integration will see BCX move from its head office in Midrand to a building alongside Telkom’s campus in Centurion.

The building in question currently houses Telkom’s mobile telecommunications team, which will move onto the company’s main campus.

BCX, which is led by CEO Isaac Mophatlane, currently rents its head office in Midrand, and Telkom would prefer it to move into real estate that is owned by the group.

Maseko said there is some duplication between the companies and by moving quickly to integrate them, it will help limit the period of uncertainty faced by some members of staff.

“Large enterprise customers are looking for one place for all of their solutions. It is important for us to begin to reshape market demand,” Maseko said at the presentation of Telkom’s annual financial results this week.

BCX, Maseko said, will be positioned as Telkom’s “premium end-to-end digital partner”.
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