Mustek has signed agreements, dated 12 December 2013, to acquire an indirect 26% equity interest in Sizwe Africa IT Group, for a total cash consideration of R15 166 666.45.
Mustek will also advance a loan of R6 666 667 to Zaloserve, the ultimate holding company of Sizwe, and a loan of R7 966 666.55 to Omni Capital.
Sizwe Africa IT is a provider of IT products, network products and solutions and IT maintenance and support services.
According to a statement from Mustek, the transaction is part of the group’s drive to broaden its service offering. “It would also deliver access to a larger customer footprint, align us with a partner with a solid track record and critical mass and improve our Enterprise Development standing,” it states.
“While striving to offer customers a perfect match for their technology needs, the acquisition of a stake in Sizwe will enable Mustek to move up the value chain by strengthening its service offering.”
The areas it believes will be strengthened are:
- * Network solutions, including IT network and infrastructure design and implementation;
- * Infrastructure solutions, including a spectrum of turnkey solutions for facility management and infrastructure maintenance; and
- * A service delivery model that offers a total solution in managing the life cycle of equipment, fielding skilled technicians countrywide to provide IT and print solutions and end-user maintenance and support, with immediate service assured through a 24-hour service desk.
The transaction is subject to the necessary regulatory approvals. It does not require shareholder approval.