Square One has agreed to buy Structured Infrastructure Solutions (SIS) for a consideration of R12,535-million via the issue of Square One shares.
SIS is a cabling, communications (wireless and landbased), Wi-Fi, 3G and consultancy business. It also has a wholly-owned subsidiary that specialises in industrial coding and marking solutions.
The move is part of Square One's strategy of reducing its dependence on its traditional channel business and growing into higher margin and higher value areas.
Some of the areas it is addressing include industrial and manufacturing; infrastructure, electrical and power solutions; unified communications; and retail finance solutions.
SIS is a respected player in the infrastructure, electrical and power solutions space, predominantly focused on the Kwa-Zulu Natal region. It has been in business for more than 10 years and holds major contracts with leading enterprise and blue chip clients.
The integration with Square One enables the SIS team to expand their national reach, while Square One gains a dedicated and focused management team that will increase its delivery capacity and meet growing client requirements.
In a separate and unrelated transaction, Square One has also acquired the remaining 49% in Square One (Pty) Ltd that it does not already own for a consideration of R575 000.00.
Square One (Pty) Ltd was established in 2004 to accommodate the software integration and networking solutions business that was at that point acquired from Latitude.
Due to market developments and operational requirements, it was decided to integrate this business with other areas of the group to achieve maximum synergistic benefits and cost savings.