| Wed 15 Dec 2010, 8:54 | | UCS/BCX - UCS Group Limited/Business Connextion Gr |
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BCX UCS
BCX UCS
UCS/BCX - UCS Group Limited/Business Connextion Group Limited - Business
Connexion acquires selected UCS businesses
UCS GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/002253/06)
Share code: UCS
ISIN: ZAE000016150
BUSINESS CONNEXTION GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1988/005282/06)
Share code: BCX
ISIN: ZAE000054631
BUSINESS CONNEXION ACQUIRES SELECTED UCS BUSINESSES
Creation of largest listed SA owned ICT company
Business Connection Group Limited ("Business Connexion") and UCS Group
Limited ("UCS") have entered into an agreement that will see Business
Connexion acquire targeted UCS services businesses,thereby consolidating
the Group`s dominance as an ICT service provider in the demand-based
retail industry. The targeted entities will continue to operate in their
current form and under the UCS brand.
The merged services division will allow Business Connexion the economies
of scale to leverage their existing infrastructure in providing on demand
cloud-based services, as well as enhancing their African growth strategy.
UCS shareholders will have a significant shareholding in the largest
listed SA owned ICT company, with a combined workforce of over 6,000
skilled IT personnel. All shareholders will benefit from the combined
offering to the market.
With revenues in excess of R5.5 billion, the enhanced balance sheet and
market capitalization of the business will provide the merged entity with
even greater opportunities for key technology investments.
The combination of UCS`s strong retail expertise in both technology and
applications together with Business Connexion` strength in data centre`s
and service delivery provides exciting opportunities for customers,
especially within the retail sector.
The UCS services businesses which form the basis of the transaction are
Accsys, CEB Maintenance, Destiny E-Commerce, UCS Solutions and UCS
Technology Services.
Dean Sparrow, Deputy CEO of UCS said:
"On conclusion of the transaction, UCS will become the largest single
shareholder in Business Connexion. For UCS shareholders, this is an
opportunity to retain their shareholding in a well-traded IT stock, as
well as to unlock value. It is also an opportunity for UCS to execute its
strategy to separate out the service businesses from the software
businesses.It is a win-win outcome for all concerned."
Business Connexion willacquire the assets for approximately R614 million
and will be settled partly by the issue of 101 million new Business
Connexion shares as considerations for the proposed acquisition,
resulting in current UCS shareholders representing a 25% plus one share
in the issued share capital of Business Connexion. The balance will be
paid in cash.
The proposed transaction is dependent on the fulfillment or waiver
ofcertain conditions prior to implementation including inter aliathe
passing of various resolutions by the Business Connexion and UCS
shareholders in general meetings as well as the approvals of the
Competition Authorities and relevant regulatory authorities. A
circularcontaining full details of the proposed transactionwill be posted
to Business Connexion and UCS shareholders in due course.
The proposed transaction enjoys full board support and the transaction is
expected to be finalized within the first quarter of 2011.
Strategic synergies will be extracted from the merged entity. UCS senior
management will continue to manage the UCS retail services businesses to
ensure continuity, and to retain relevant skilled and experienced
management.
Benjamin Mophatlane, CEO of Business Connexion said:
"This transaction heralds the creation of a leading African ICT services
business, in line with Business Connexion`s strategy to become market
leaders in providing on-demand cloud-based services integral to the
retail industry. The market has seen a number of consolidations within
this sector, with a bias towards stronger economies of scale and more
extensive delivery capacity.
We will look to capitalise on the new growth opportunities that this
merger brings.We look forward to an ongoing and strategic partnership
with the remaining UCS group over the long term."
15 December 2010
Enquiries:
Business Connexion 011 2909112
Ludwe Fani 083 964 0397
College Hill 011 447 3030
Suzanne Jefferies 082 815 1812
Notes to Editors
About Business Connexion
Business Connexion Group is a leading integrator of innovative business
solutions based on information and communications technology (ICT). With
over 4000 employees and a track record spanning 29 years, Business
Connexion runs mission-critical ICT systems and manages products,
services and solutions for JSE listed and key public sector
organisations, parastatals and medium-sized companies. Business Connexion
has a unique business model and vision that centres on establishing the
company as a world-class provider of the Connective Intelligence needed
to amplify the simplicity, richness and affordability of end-users`
connective interactions as they work across the African continent and
around the globe. This represents the company`s approach to configuring
and integrating business solutions which we develop and implement by
drawing on expertise from entrenched competencies across the
organisation.
In order to deliver a world-class service Business Connexion has
developed strong relationships and attained top-level certification with
many of the world`s leading ICT suppliers.
Top 500 South Africa`s best managed company. To see how we can connect
your business to a world of endless possibilities visitwww.bcx.co.za
About UCS
UCS Group is an IT business with a primary focus on the provision of
Software, Solutions and Services for selected markets. UCS has achieved a
leadership position in the retail market sector in South Africa and is
well positioned for further growth locally and internationally through a
number of defined initiatives.
About UCS Services
Accsys
Accsys is an award winning South African company which develops, markets
and supports a comprehensive suite of integrated people management
software, Accsys PeopleWare. High level training, professional
consultancy and technical expertise support industry leading solutions,
including Payroll, ESS, Time & Attendance, Biometric Access Control and
Human Resources as well as offering Recruitment and Outsourcing.
CEB Maintenance
CEB Maintenance specialises in `man-in-van` IT services for large-scale
retail operators and has an enviable list of blue chip retail customers.
Destiny E-Commerce
The business known as CSC is an authorized VeriFone International Partner
for VeriFone payment systems into Sub Saharan Africa and has sale and
distribution rights for such terminals into the territory. CSC further
provides software payment solutions and field support services for use
with and in relation to the payment devices and/or systems.
UCS Solutions
UCS Solutions is a leading business and IT solutions provider to clients
in the retail and consumer goods industries. The company harnesses its
industry knowledge to help clients achieve better business performance,
offering end-to-end consulting, business systems outsourcing and
technology services across the full range of IT operations.
UCS Technology Services
UCS Technology Services renders services relating to the "in-store" point
of sale providing software on behalf of third party software vendors,
solutions and services required to install, operate and support point-of-
sale information technology elements.
Date: 15/12/2010 08:31:01 Produced by the JSE SENS Department.
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