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Allied Electronics (Altron) has announced that a new division, Altron TMT (Telecommunications, Multimedia and Information Technology), will be created following the operative date of the acquisition of the minority shares in Allied Technologies (Altech).
Approval has been received for Altron’s purchase of 100% of Altech, along with its 100% owned subsidiaries Bytes Technology Group Pty and power electronics group Power Technologies (Powertech).

The Altron TMT division will comprise both the Altech and Bytes businesses, although these two businesses will continue to exist as separate entities maintaining their well established brand identities

Robert Venter, chief executive at Altron, comments: “As a result of increasing convergence between the IT and telecommunications sectors we were starting to see many opportunities for Altech and Bytes to work closer together.

“Following the acquisition of Altech by Altron, it is now possible for us to maximise synergies and eliminate overlap between the Altech and Bytes groups by bringing them together in the Altron TMT division

“It has become necessary to streamline the operations and put forward the best possible combination of products and services to our clients. We see opportunities for both revenue enhancement as well as cost efficiencies in the new structure.

“This will include the combination of the head offices of Bytes and Altech in the recently established Altech head office in Woodmead. This will further enhance the collaboration between the businesses.”

The Altron TMT division will be led by Craig Venter, who has been appointed to the position of Altron group executive: TMT, with strategic and operating responsibility for maximising the synergies between the Altech and Bytes businesses. He will also continue to fulfill his existing role as Altech CEO.

Rob Abraham, currently CEO of Bytes, will remain in that position reporting to Craig Venter. Abraham will remain a member of the Altron executive committee and the Altron board.

Peter Riskowitz, currently CFO of Bytes, will assume the role of Altron TMT: CFO reporting to Craig Venter.

“We have a good balance of Altech and Bytes people with decades of industry experience occupying senior management positions in the proposed new Altron TMT division.
“This will assist with the integration of the businesses through alignment of assets, the removal of duplicated costs through a shared service model and a more focused approach to customers thereby providing both cross and up selling opportunities,” says Robert Venter.

According to Craig Venter there are compelling reasons for Altech and Bytes joining forces.

“Bringing Altech and Bytes together will create the largest converged solutions group on the African continent. In addition, the companies are both leading players in the markets in which they operate. Altech has a tremendous telecommunications and IT heritage and has leading market share in the markets in which it operates.

“Bytes has equally strong IT capabilities and putting these two groups together creates a formidable organisation, with incredible resource and potential in the TMT environment,” he says.

In addition to the Altron TMT appointments, Dr. Willie Oosthuysen, previously chief technology and chief strategic officer at Altech has been appointed as Altron group executive: technology and strategy reporting to Robert Venter and joining the Altron executive committee.

“As Altron starts its transformation from a pure investment holding company to a strategic operating company Willie will play a vital role in guiding and coordinating the operations towards, not only greater efficiency, but also a united go-to-market offering to our customers. Going forward our clients will be central to the way we structure our business and package our products and services,” Robert Venter says.