The Competition Commission has approved Jasco Electronics’ proposed acquisition of Spescom. The commission’s approval will allow the two companies, both of which are listed on the JSE, to finalise the transaction.
The two parties first announced the planned deal on 3 September. It will be settled through a mix of shares and cash.
The deal should help Jasco improve its balance sheet, revenue and earnings while achieving significant cost savings with the consolidation of management, compliance and head office costs, says Jasco CEO Martin Lotz.
Putting the two head offices together and having one listed vehicle will immediately save more than R7m/year, he says. This will result in margins in the merged entity. Spescom’s strong cash generation will improve Jasco’s gearing. — Staff reporter, TechCentral
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