| Wed 27 Jun 2007, 17:32 | | ALT - Allied Technologies Limited - Altech Acquire |
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ALT - Allied Technologies Limited - Altech Acquires ComTech for R90million
Allied Technologies Limited
Member of the Altron Group
Incorporated in the Republic of South Africa
(Registration number: 1946/020415/06)
Share code: ALT
ISIN number: ZAE000015251
Altech Acquires ComTech for R90million
Altech announced today that it has signed an agreement to acquire fleet
management company, ComTech (Pty) Ltd, for Altech Netstar Fleet Management
Services (ANFMS), subject to the fulfillment of certain conditions
precedent. The potential full value of the deal is R90 million, of which R50
million is payable up-front and the balance over two years dependent on
specified and agreed profit targets being achieved.
Altech, South Africa`s market leader in Stolen Vehicle Recovery (SVR)
through its subsidiary, Altech Netstar with 41% of the market, will now
dramatically increase its share of the fleet management market with this
deal, growing its market share from 8% to approximately 20%, effectively
doubling its subscriber base.
"ComTech has an excellent reputation for developing and managing advanced
fleet management solutions, and has produced profitable results, positioning
it well to gain traction as this industry accelerates", says Altech CEO,
Craig Venter, "Their technology, their management, their footprint in
Africa, together with their vision are well-aligned to ours, particularly in
light of our own global expansion activities".
ComTech, with turnover of approximately R100 million per annum, has been in
operation for 12 years and boasts a staff complement of 140 highly
experienced personnel. Brian Edmonds, Managing Director of ComTech, said
"We are very pleased with the transaction and view the acquisition as an
opportunity not only for the expansion of Altech Netstar Fleet Management
Services, but also for the longevity and growth of ComTech`s formidable team
and excellent customer base".
Andy Baker, Managing Director of Altech Netstar says "This acquisition not
only gives us a broad and deep suite of high and low end products, it also
positions us well to significantly increase our service offerings to a more
diverse range of customers".
A new holding company will be created in which Altech will hold 75% and
Nariku (the black empowerment partner of ANFMS) will hold the remaining 25%.
Both ANFMS and ComTech will be wholly owned subsidiaries of this new
holding company, which will be called Altech Netstar Fleet Management
Holdings (Pty) Limited.
Venter further commented, "This acquisition positions Altech Netstar Fleet
Management Services with a significant market share presence in the high
growth South African Fleet Management market".
Ends
FOR MORE INFORMATION PLEASE CONTACT:
ANDY BAKER: MANAGING DIRECTOR - ALTECH NETSTAR
TEL: (011) 207 - 5038
CELL: (011) 083 657 2886
EMAIL: andyb@netstar.altech.co.za
OR
JOHN REGAN: GROUP EXECUTIVE: MARKETING
TEL: (011) 715-9038
FAX: (011) 715-9044
CELL: 084 800 8008
EMAIL: jregan@altech.co.za
Sponsor: Investec Bank
Date: 27/06/2007 17:32:50 Produced by the JSE SENS Department.
