Jasco Electronics is acquiring 51% of Ramm Technologies, for R30,6-million.
The acquisition is via a sale of shares agreement with Sudant Investments, Lindsay Welham and Quinton Ramsay, and Ramm.
Ramm was established in 1998, in Johannesburg, by Lindsay Welham and initially specialised in the development of asset tracking systems based on GSM networks and geographic information systems (GIS) platforms.
More recently, Ramm has upgraded its commercial model for Internet of Things (IoT) services, which allows for data analytics from several thousand devices deployed at customer premises.
Ramm operates its own national operations centre (NOC), from where it monitors its customers’ assets and productivity. This service offering has resulted in more than 80% of revenue being annuity.
Ramm’s operations cover Gauteng and the Western Cape with offices in both provinces. Its customer base is predominantly the major municipalities, which it has serviced for more than 10 years. Ramm assists these municipal customers by ensuring that all services that are rendered are being billed correctly.
Ramm’s customers’ payment records have been consistently good and in line with contracted payment terms.
The company has had a solid track record of double-digit revenue growth since 2015, with consistent operating margins above 15%.
The Ramm acquisition will ensure an entry for Jasco into the asset tracking market through I0T, as well as further growth into the public sector.
The acquisition creates the opportunity to cross-sell the Jasco product and service offering to Ramm customers and Ramm’s technology solutions to Jasco’s blue-chip corporate customer base.