Nampak Limited
(Registration number 1968/008070/06)
(Incorporated in the Republic of South Africa)
Velocit-e joins NamITech stable in R68 million deal
NamITech, the secure solutions IT subsidiary of JSE listed Nampak, has
concluded a cash and share deal worth R68 million, with electronic security
and transaction specialist Velocit-e. The overriding rationale for the
merger is to accelerate NamITech's growth in the security sector of the IT
industry and capitalise on the many business opportunities in this market.
"The Velocit-e deal is in line with NamITech's strategic objective to
strengthen its technology base and provide customers with a wider range of
security and transaction focused solutions", said Rex Tomlinson, Chairman of
NamITech.
Charles Laxton, CEO of Velocit-e said, "that while Velocit-e had established
a successful track record in the provision of innovative cashless and
electronic security solutions, our ability to exploit this technology, both
locally and globally, has been hampered by limited financial and management
resources. NamITech will provide us the opportunity to continue developing
leading edge technology for the future."
"Velocit-e and NamITech share a common vision and have an enviable strategic
fit in terms of products and services, target markets and customers. We
therefore have every confidence that this merger will unlock value," said
Tomlinson.
Laxton added that "he believes that the merger of the two companies will
establish NamITech as a leading player in the South African IT security and
transaction market".
The merger will see the consolidation of Velocit-e into NamITech's premises
in Linbro Business Park. The Velocit-e brand will be retained within the
NamITech group of companies. The deal is subject to Competition Commission
approval.
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