Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Eskom targets 32GW green energy shift by 2040

      16 July 2025

      MTN Group appoints new chief enterprise officer

      16 July 2025

      Kruger Park’s white rhinos get a hi-tech lifeline

      16 July 2025

      South Africa loosens media ownership rules – but keeps one hand on the remote

      16 July 2025

      The real cost of a cashless economy

      16 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Alviva in talks to acquire rival Tarsus: sources

    Alviva in talks to acquire rival Tarsus: sources

    By Duncan McLeod13 October 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Tarsus head office in Johannesburg. Image c/o Tarsus website

    South Africa’s largest technology distribution group, JSE-listed Alviva Holdings, is in talks to acquire rival Tarsus, well-placed sources have told TechCentral.

    A due diligence has apparently already been concluded and an announcement of a deal is probably not far off, one source said. Alviva has, however, not cautioned shareholders about any discussions and TechCentral understands a deal hasn’t yet been signed. News update: Alviva confirms it’s in talks to buy Tarsus.

    Alviva is the holding company of both Axiz and Pinnacle, two of South Africa’s largest technology distributors.

    Tarsus was founded in the mid-1980s by Leo Baxter and Mike McGrath, who have both since exited the business

    Tarsus, formerly known as MB Technologies, represents major international brands, including Dell, Hewlett-Packard, HP Enterprise, Lenovo, Microsoft and Samsung. It was founded in the mid-1980s by Leo Baxter and Mike McGrath, who have both since exited the business.

    Tarsus’s major shareholders include Investec and Royal Bafokeng Holdings.

    It’s not known how much Alviva intends offering to Tarsus shareholders. The company is also not listed, so it’s financial information is also not readily available to determine a possible range of valuations. Valuation could still prove a sticking point.

    The Spies connection

    Alviva last month reported a 50% decline in full-year earnings. Revenue for the 12 months to end-June 2020 fell by 7% to R14.8-billion, while core earnings per share fell by 36%.

    Interestingly, Alviva Holdings CEO Pierre Spies is a previous CEO of Tarsus and is therefore intimately familiar with the business. He led the company from January 2007 to April 2014, before joining Axiz as CEO in May 2014. Eighteen months later, in January 2016, he was appointed as CEO of Alviva. In all, Spies spent 22 years with Tarsus, including as financial director and chief operations officer.

    Spies could not immediately be reached for comment. An attempt to reach Tarsus CEO Miles Crisp on his mobile phone was also unsuccessful.

    Pierre Spies … The former Tarsus CEO and current Alviva Holdings CEO could not immediately be reached for comment

    Equities analyst Irnest Kaplan said on Tuesday that a deal, if it were to happen, would “make a lot of sense”.

    “In distribution, the margins are slim, and the market size isn’t growing because the South African economy is not doing well,” Kaplan said. “You have volumes not growing much and there is always pressure on margins. The only way to do well in this kind of game is to have much bigger volumes. If the market is not growing organically, the only way to grow is to buy another player…”

    One challenge, though, could be in securing the necessary approvals from the competition authorities. Alviva is the biggest technology distribution group in South Africa, while Tarsus is probably the second biggest, Kaplan said. There might be concerns that an acquisition would lessen competition. Layoffs might also be inevitable if the businesses were merged.  — © 2020 NewsCentral Media



    Alviva Alviva Holdings Axiz Investec Leo Baxter MB Technologies Mike McGrath Pierre Spies Pinnacle Tarsus top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleActis acquires controlling stake in fibre network Octotel
    Next Article Alviva confirms it’s in talks to buy Tarsus

    Related Posts

    The great migration to Windows 11 Pro starts here

    27 June 2025

    The ROI of AI in IT services – driving cost reduction, speed and productivity

    26 June 2025

    New CEO to take reins at Tarsus Distribution

    30 May 2025
    Company News

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025

    Mental wellness at scale: how Mac fuels October Health’s mission

    15 July 2025

    Banking on LEO: Q-KON transforms financial services connectivity

    14 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.