| Mon 13 Dec 2010, 10:29 | | ALT - Allied Technologies Limited - Altech acquires Swist Technology Solutions |
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ALT
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ALT - Allied Technologies Limited - Altech acquires Swist Technology Solutions
for R52 million
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" or "the company")
Altech acquires Swist Technology Solutions for R52 million
JSE listed Allied Technologies Limited (Altech) today announced the acquisition
of 100% of the equity in Swist Technology Solutions (Pty) Ltd (Swisttech).
The full value of the deal is R52 million, of which R30 million is payable up-
front and the balance payable over three years, dependent on specific and agreed
profit targets being achieved.
The acquisition follows the completion of a satisfactory due diligence of
Swisttech by Altech and approval by the board of Altech.
Swisttech is an Independent Software Vendor (ISV) focusing on infrastructure and
integration services, mobility services and software development and is a major
billing software vendor in the South African market.
The purchase of Swisttech unlocks significant synergies with other Altech
operations, in particular Altech ISIS, a leading telecoms solutions provider and
systems integrator with solutions deployed in networks ranging from small to
large and supporting over 60 million subscribers.
"This acquisition enhances our ability to move up the value chain by providing
end-to-end solutions, particularly into the financial services and telecoms
industries, in addition to augmenting our earnings profile. Furthermore, it
enables Altech to offer a turn-key billing solution that is very attractive to
network operators with the added advantage of having to deal with only one
supplier for the majority of their required business functionality," said Craig
Venter, Altech CEO.
Swisttech`s core focus includes the delivery of infrastructure services,
integration services, and the development of leading-edge applications, products
and solutions. Additionally, Swisttech`s strong focus on research and
development has kept it at the forefront of product innovation.
"Swisttech has established a significant track record for delivering innovative
solutions to blue-chip companies and specialises in creating and implementing
quality technology products and services. The company has produced profitable
results since its inception, and with this acquisition we are well positioned to
further entrench our leadership in the Telecommunications, Multi-media and
Information Technology (TMT) sector," said Venter.
To preserve current efficiencies and standards, Altech will retain existing
Swisttech management and staff whilst it provides supporting administration
services and strategic input to the company.
The current CEO of Swisttech and key employees will enter into four year service
contracts in order to ensure a smooth transition into the Altech Group.
www.altech.co.za
Sponsor and Investment Bank: Investec Limited
Johannesburg
13 December 2010
Date: 13/12/2010 10:29:09 Produced by the JSE SENS Department.
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