JSE AltX-listed SilverBridge Holdings has completed its acquisition of 51%
of Ones 'N Zeros Professional Services for R11,1 million, as all conditions
precedent have been met.
The settlement of the transaction is 50% in cash and 50% in shares:
SilverBridge will issue 1,98 million shares at an issue price of R2,80 a
share to fund the transaction. 50% of the cash payment was made on the
effective date of the transaction, with the balance to be paid when Ones 'N
Zeros has met its profit forecasts.
SilverBridge has an option to buy the remaining 49% stake in the business.
Ones 'N Zeros is a complementary company to SDT Financial Software
Solutions, until now the only company in the SilverBridge group. Ones 'N
Zeros' primary business is systems implementation consulting in the banking
sector, while SDT has its own software solutions for the life assurance
market. The skills base of Ones 'N Zeros permits SilverBridge access to the
consulting sector of the life assurance market, while Ones 'N Zeros is now
able to expand out of its traditional market into life assurance.
"Ones 'N Zeros brings 30 skilled staff and a 12-year track record of
successful delivery to SilverBridge," says SilverBridge CEO Jaco Swanepoel.
"The company has shown consistent revenue growth and profitability, and its
success is based on delivering projects on time and within budget.
"Ones 'N Zeros will enhance the group's earnings and profitability," adds
Swanepoel, "and represents the first step in our stated strategy of growing
through acquisition as well as organically."
According to the published pro forma effects, had Ones 'N Zeros been
incorporated in the group at the beginning of the financial year ended 29
February 2008, it would have boosted earnings per share 11,43%.
"We translate business strategy into IT strategy for customers in the
banking sector," says Ones 'N Zeros CEO Sandra Duetsch. "We ensure that our
clients maximise the benefits from their IT investment. SilverBridge
represents an ideal fit for us, as we can leverage our experience to enter
new markets. There will be significant intellectual capital transfer between
Allour companies as we both broaden our market exposure."