Acquisitive JSE-listed IT services group EOH has announced it is buying 100% of Aptronics, a company that provides networking, virtualisation, and server and storage infrastructure services to businesses for R194m.
The purchase price is payable over two years, 50% in cash and 50% in EOH shares, subject to profits warranted. Aptronics, which was founded 20 years ago and which has turnover of more than R500m/year, must deliver a cumulative profit after tax of R65m over two years.
Due to its relative size, the acquisition falls below the threshold of a categorised transaction in terms of the listings requirements of the JSE and its announcement is therefore voluntary, EOH said.
EOH ICT Solutions CEO Rob Godlonton said the acquisition will enhance EOH’s existing service offerings and improve its capabilities in the high-end data centre and infrastructure space.
“Aptronics operates across all key industry verticals and already works with many of EOH’s existing technology partners,” Godlonton said.
The deal will allow Aptronics to reach more customers, expand geographically and enhance its delivery capacity, the companies said.
EOH’s share price closed at R139,98 on Wednesday, ahead of the Aptronics deal announcement. The counter has shed 14% of its value over the past year on investor concerns that EOH won’t be able to maintain its historically strong growth into the future. Over five years, the share has added more 600%. — © 2016 NewsCentral Media