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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.