Altron IT subsidiary Bytes Technology Group has acquired identity management company Brand New Technologies (BNTech). The purchase consideration, which has not been disclosed, is dependent on the attainment of certain profit targets over a period of three years.
BNTech specialises in securing and validating identities. It offers biometric scanners, credentials management solutions and security devices covering client registration, border management and document authentication. The company has distribution rights for a number of international identity management vendors’ products, including Trüb and Lumidigm.
“The acquisition of BNTech’s business, which operates in a niche but fast-growing industry, aligns with our acquisition strategy of securing businesses which offer higher returns and that can slot seamlessly into our existing operations,” says Bytes CEO Rob Abraham. He says identity management is a fast-developing area that has as yet not been commoditised like many other IT products.
There will be opportunities, too, for collaboration within the Altron group, particularly between certain Bytes and Altech. Bytes is the exclusive Southern African distributor for Unisys products as well as Kronos, the global leader in workforce management, while Altech Card Solutions offers data card products and card personalisation solutions. Additionally, Bytes has developed its own biometric middleware software solution in the form of its Navajo product suite.
BNTech supplies the government, banking, insurance and retail markets. Bytes says its presence in the public sector “fits well” with its plans to expand its government business. The company recently established a government solutions division.
“Bytes’s clients are predominantly in the retail and financial services space and, with the government being the largest IT spender in South Africa, it is important that we expand our interests in this area,” says Abraham.
The BNTech transaction follows a number of niche acquisitions Bytes has made in the past 18 months. It bought UK security software business Security Partnerships, Unisys Africa and Alliance Business Solutions, an enterprise resource planning software specialist. — (c) 2013 NewsCentral Media
