In a major development within the domestic ICT services space, ICT infrastructure management and managed services specialist firm Integr8 IT, part of the Integr8 Group, has been acquired by Business Connexion for an estimated R126 million. (US$ 14m)
Integr8 IT is the largest privately owned ICT infrastructure management and managed services companies on the African continent. It was established in 2001 by high-impact award winning entrepreneur duo Robert Sussman and Lance Fanaroff and is a renowned leader of annuity based infrastructure management and managed services to the mid-market corporate throughout South Africa and Africa.
The company owns and operates the only African based Nerve Centre®, a digital hub of people, technology and process, that regulates, monitors and maintains the technology infrastructure for many leading corporations.
Intergr8 IT’s key IP has been built into this Nerve Centre®, which underpins all service management. This includes “self-healing” routines and the intelligent management and real time remediation of distributed infrastructure.
Intergr8 IT has a portfolio of specialised business units and services that include: infrastructure management, private on-premise and off-premise private cloud services, public cloud services, virtualisation, storage, routing, switching, security, hosting, connectivity, internet services and disaster recovery. This is further complemented by its professional services business units, with lead architects in high level design infrastructure, and further supported by its project management office for global rollout and provisioning.
According to joint CEO Sussman, Integr8 IT has always been a hugely attractive target due to its unique positioning – with a stream of offers from companies looking to acquire, merge or list the ICT Company.
“This deal makes real sense to Business Connexion and Integr8 IT, as well as our respective personnel and clients. For the first time in South Africa there is a single company with 7,000 highly skilled personnel that span the continent, which scales the delivery of its services from the mid-market corporate to enterprise space. This is a unique and compelling offering for our joint customers, who are able to experience the benefit of Africa’s largest IT company”, says Sussman.
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Sussman points out that BCG, the holding company of BCX and the largest IT outsourcing company on the African continent, has allowed him and his executive team to tick all of the boxes with regards to their three basic principles that relate to the acquisition of the company:
* The well-respected Integr8® brand that is synonymous with technical acumen and delivery remains.
* 100% of Integr8’s employees that have been hand-picked over the past decade are not only retained, but given additional career and growth opportunities in the now almost 7,000 strong personnel company.
* Integr8 IT remains a strong entrepreneurial, innovative and well corporatized entity and continues to own the mid-market corporate space, with a partner that will help it double its growth year on year using the Integr8 Nerve Centre® leveraged platform.
About the acquisition, Sussman adds, “I am excited from where we have come from, I am hugely excited about where we are today, but this pales in comparison about the excitement I feel for the opportunities that will arise whilst working hand-in-hand with BCG and all of their subsidiaries.”
Joint-CEO Fanaroff speaks of global opportunities for both Integr8 employees and Integr8 customers, considering it to be an immediate effect of the acquisition, along with the ability to scale, promote and leverage the wide breadth of services that exist in this formidable force.
“Integr8 IT has had the luxury of organic growth over the past decade and it has been built with a balance of entrepreneurial innovation and corporatisation. The intellectual property and structural capital, together with the technology specialisation and critical mass developed over the years, has given Integr8 IT unique positioning in the midmarket corporate”, says Fanaroff
“Over and above the depth and breadth of our services, together with BCX, our South African and African footprint allows us to scale our offering with the offerings of the multi-nationals and enterprise ICT players in the public sector and broader African market,” states Fanaroff.
Matthew Blewett, Business Connexion Chief Operating Officer and Head of Mergers and Acquisitions’, notes, “The Business Connexion Group has a very clear growth strategy and the acquisition of Integr8 IT supports this by allowing the Group to expand its offerings into identified markets where it currently has a minimal share. Ultimately for a services–oriented business like ours, its greatest asset is its people. To this end we are very excited about the quality of leadership and skills that will be joining our group through Integr8 IT. The company’s proven growth track record and innovative solutions will be a welcome addition to the Business Connexion Group.”
Benjamin Mophatlane, CEO of Business Connexion Group comments, “It is an absolute pleasure to announce the transaction between the two enterprises. The rationale behind acquiring Integr8 IT is to strengthen our market depth and breadth within the mid-market corporate clients, which is experiencing huge growth within the South African and African Markets.“Rob Sussman, Lance Fanaroff and their team bring entrepreneurial flair and proven management and leadership capability to allow even broader benefits for Business Connexion, where Business Connexion can further extend its offering into the mid-market corporate. Integr8’s strong delivery via their Nerve Centre® brings additional infrastructure and managed services capability to this market and is also hugely complimentary to the Connexion Zone strategy”
With Business Connexion already having a staff compliment of about 6600, the assimilation of Integr8, will add another 550 personnel to the group with 286 full time employees and 264 regional contactors to the company.“Integr8 is a business that is well renowned and has won numerous awards. As recent as last week Integr8 was voted the Microsoft Midmarket Partner of the year award for 2012. We are extremely proud and privileged to welcome Integr8 to the Business Connexion Group, says Mophatlane.
