Black-owned e-business company, Csonke.com has purchased a 30% share in digital agency KrazyBoyz Digital, for an undisclosed amount. The transaction has led to the creation of one of the largest African digital agencies.
The deal consists of the amalgamation of Csonke.com with KrazyBoyz and is financed through cash and existing assets. The new operating company will be known as KrazyBoyz Digital and will be a Csonke Holdings company. Csonke has the option to acquire a further 21% which will, in future, allow it to attain a majority shareholding.
Csonke.com executive director and newly-appointed KrazyBoyz executive chairman Zibusiso Mkhwanazi, says the deal marks an end to the company’s long search for a partner who would add value to the business and that Csonke’s credentials and reputation complemented KrazyBoyz.
Csonke.com was started in 2001 with only R2 000.00 seed capital by Mkhwanazi and his business partner Neo Motlhabane. They later acquired support from Umsobomvu with a market access voucher.
This assists young people to acquire business support by providing them with vouchers for business plans, accounting, marketing and other key areas that will assist them in developing their business.
“Their voucher helped the entrepreneurs accelerate the growth of their business which led to them doing business with large corporates and government. The due diligence and advisory services of the deal were partly also financed by the UYF voucher programme,” says Umsobomvu operations manager BDSVP, Mapitso Nchapha.
Andre De Villers, MD of KrazyBoyz Cape Town says, KrazyBoyz sought investment opportunities in the ICT space that would complement their existing business. “The transaction made more sense as Csonke.com will assist the business to be more competitive, improve its systems, offerings and capacity,” he said.
The two companies are viewed as leaders in the web and portal development industry. Established in 1997 with offices in Johannesburg and Cape Town, KrazyBoyz specialises in providing end-to-end digital solutions and its clients include Foschini, Cardies, Development Bank of SA, NEPAD, Pan African Parliament and PlayUkLottery.com.
“Csonke.com holds a strong presence in the public and private sector with clients including City of Tshwane, NERSA, ABSA, SA Eagle and Barloworld Equipment. KrazyBoyz will be refining its digital marketing and communication services as well as web and digital design operations and will be introducing new services such as digital signage, info kiosks and custom software development as a result of the merger, says Mkhonazi.
KrazyBoyz says it intends to absorb Csonke’s employment equity, corporate social investment and preferential procurement policies which will mean change within the organisation.