Netsurit, South Africa's largest managed outsourced IT provider specialising in small and medium enterprises (SMEs), has merged with Cape Town-based Millennium Computer Services.
The deal has benefits on both sides, with Netsurit now able to expand its existing reach in the Western Cape market, while Millennium – with Netsurit's network and national reputation behind it – will be able to take its business to the next level.
Endorsing the outsourcing principle as the most logical option for SMEs looking to optimise their IT investment, Netsurit utilises its position of strength in the market to enable SMEs to dramatically reduce costs. The company understands that historically, the technology needs of SMEs have been sorely neglected – often as a result of a poor understanding of what these businesses require from their technology network.
Netsurit opened its doors in the late 1990s and today has 160 dedicated, technically skilled employees serving approximately 160 clients in South Africa. The true measure of its success can be seen in the fact that the company has doubled its earnings year-on-year, reporting R60-million in annual turnover during the last financial year.
Millennium Computer Services, like Netsurit, was established about 11 years ago and has found its niche providing a range of services, including IT consultancy, network deployment, service and support and corporate internet services to the Western Cape corporate sector.
According to Netsurit's CEO, Orrin Klopper, Netsurit aims to increase the size of both its client base and its share of the IT services market.
"This is just a first step for us and we have a clearly defined fast tracked path of corporate activity that we intend to pursue across both South Africa and into international markets. This acquisitive growth will also allow us to diversify into other solutions and services," he says.
"Our interest in Millennium Computer Services grew due to their success in building a great business in a market that is not always easy to flourish in, so I take my hat off to Millennium and state that we are proud to be a part of the same team."
Grenville Salmon, CFO at Netsurit, adds that the merger increases opportunities for both companies.
"For example, Millennium has several prestigious clients and by utilising their strong market presence in the region and coupling this with Netsurit's national size and strong relations in Johannesburg we anticipate being in a position to achieve major growth in the coming years."
He believes that both organisations can learn and benefit from one another.