JSE-listed technology firm Mustek has acquired a 70% stake in cybersecurity firm CyberAntix from Ayo Technology Solutions subsidiary Sizwe IT Group for R20-million.
Mustek is spending R8-million on the deal and is taking on a loan between Sizwe and CyberAntix worth R12-million.
According to CyberAntix GM Morne Terblanche, the deal will diversify Mustek’s revenues while offering CyberAntix growth opportunities by providing access to new markets.
Speaking to TechCentral on Thursday, Terblanche explained how CyberAntix white-labels its security operations centre-as-a-service for third-party vendors.
“We have a reseller strategy that fits seamlessly with Mustek as a reseller of technology. They have a sales team and a client base they are already offering services to. Mustek is so well established in South Africa and in Africa that as CyberAntix we can leverage on that to penetrate the market,” said Terblanche.
Terblanche said CyberAntix’s reseller strategy gives the company the opportunity to focus on its operations while its partners focus on taking its products and services to the market. The acquisition by Mustek comes with no management changes.
Suite of services
Founded in 2020, CyberAntix offers a suite of cybersecurity products and services, including incident response, forensics, security engineering, penetration testing and cybersecurity training. The remaining 30% stake in CyberAntix will continue to be owned by NIL Data Africa, which provides support for the cybersecurity training aspects of CyberAntix’s business.
“The skills shortage is a big problem in South Africa, so NIL trains the guys and we provide internships to help launch their careers in cybersecurity,” said Terblanche.
Mustek hopes to use the acquisition to expand the cloud services it already provides to the market by expanding its offerings from hardware towards services.
In the group’s results for the year ended 30 June 2024, revenue declined by 16% to R8.5-billion as sales of renewable energy solutions tanked following the suspension of load shedding in March.
The sale of green energy solutions fuelled Mustek’s growth in the previous year, while its IT businesses stalled due to spending cuts by clients due to high inflation and interest rates combined with uncertainty in the run-up to the national general election in May.
“We have cloud software and security as part of our product offering, so this [acquisition] gives a value-add to our customer base. It helps us differentiate ourselves and evolve, like most traditional distributors. We are spreading ourselves more into the services and software aspects of the game and this broadens our product offering,” said Mustek chief marketing officer Nicole Orr. – © 2024 NewsCentral Media
