Technology group Etion is selling its Lawtrust information security specialist subsidiary to Altron for R245-million as part of a programme to unlock shareholder value.
Etion said its share price does not reflect the underlying intrinsic value of the businesses in the group and its board therefore started a process last year to unlock shareholder value. The Lawtrust sale forms part of this plan, it said.
Etion must still obtain approval from its shareholders for the disposal, while Altron must secure the green light from the Competition Commission.
The value of the net assets of Lawtrust as at 30 September 2020 was R102-million. In the six months to end-September 2020, Lawtrust generated profit of R21-million (including intra-group charges).
Lawtrust provides a range of security services in the IT space, including authentication, encryption, digital signatures and biometrics. The business was founded in 2006 and has more than 500 clients.
In a statement, Altron CEO Mteto Nyati said: “In 2019, we acquired Ubusha Technologies, a leader in identity management. Ubusha formed the foundation of Altron Security. It has proven to be a great acquisition as customers accelerated their digital transformation due to Covid-19. The acquisition of Lawtrust positions Altron Security as a one-stop shop for all that is digital and information security.” — © 2021 NewsCentral Media
