South Africa’s Telkom has said it will buy Business Connexion in cash at about R2,7-billion or for R6.60 per Ordinary Scheme Share.
The amitious deal comes after nearly seven years when Telkom wanted to buy BCX in 2007 but was opposed by the Competition Tribunal.
With offices in UK, SA and Nigeria and over 6 700 employees in Africa, BCX’s purchase is significant to Telkom’s reinforcement because of its position in the country’s IT Infrastructure, data centres and application development.
With a revenue of R6-billion per annum plus, BCX sees the move to up its pan-African competitivenes using Telkom’s huge communications network and strategic international relationships to enable additional capabilities where it operates.
According to Benjamin Mophatlane, CEO of Business Connexion, “There are clear opportunities that exist between our respective companies. The dynamics of the global ICT industry are changing particularly with the evolution and convergence of technologies that have blurred the lines that once separated telecoms players from the world of information technology.”
BCX and Telkom will complement each others capabilities and make an outfit to perfectly serve their cleints suing both their resources, BCX’s multi-national client base, BCX convergence strategy among others.
“It is business as usual for us until all the conditions of the proposed transaction have been fulfilled. Unrelated to the offer, we are currently busy with a re-organisation process which supports the delivery of sustainable growth in the business and enhanced quality of service offerings to our customers. This important process is expected to be completed by the end of our financial year end,” Mophatlane adds.
Telkom has been working on a growth strategy since April last year, the acquisition will help it expand both its services and client base and also up its capabilities. Telkom has no plans to change the BCX brand and management team.