Monday, January 14, 2008

The AltX acquisitors

(Fin24) - Recent listings on the JSE's AltX exchange are taking advantage of their new firepower as listed entities to consolidate the lower end of their respective markets.


Companies ranging from call-centre business Dialogue Group to engineering technology business Ansys, biometrics company Ideco, consumer electronics company Ellies, and managed telecoms player Huge Group have announced acquisitions since late last year.


Meanwhile others, like cellular least-cost router TeleMasters and applications software business Dynamic Visual Technologies are trading under cautionary, the former since January 10, and the latter, since January 3.


Although Vox Telecom is not currently trading under cautionary, it has been highly acquisitive, buying 12 companies in the past 18 months.


Its most recent purchases were of Absa's internet customer base, and complementary business Storm Telecom. Vox is likely to be a player in other sector consolidation opportunities that may arise.


In the most recent of the AltX company acquisitions, Dialogue announced on January 11 that it would pay at least R47.5m in cash and shares for a company called Verge, a consultancy and provider of business process outsourcing services to the public sector, from Simeka Group.


Dialogue said this was in line with its expansion strategy and desire to further penetrate the public sector. Dialogue already owns 50% of one of Verge's businesses, Sibize International, and is buying the other half as part of this transaction. It is also buying various outsourcing contracts, the price of which will be determined at a later stage.
 

No comments: