UCS Solutions is selling its Enterprise Solutions (ES) business to HCL Axon, a subsidiary of the UK's Axon Group, for about R57-million. The sale is effective from 1 August.
The transaction refers to the cautionary announcements issued by the company on 7 May and 18 June.
UCS focuses on software, solutions and services for selected markets. The sales of its ES business to HCL Axon is part of a broad-based strategic partnership in the SAP retail market.
HCL Axon is a global SAP-enabled transformation consultancy, while ES is a part of UCS Solutions’ Business Solutions Division and offers Tier 1 retail and wholesale SAP project implementations.
The partnership will allow UCS Group to grow its annuity services business internationally and to support the growth of its SAP All in One business. Because it supports HCL Axon’s SAP Retail international ambitions, it will provide a launch platform for this business in South Africa.
HCL Axon employs more than 4 500 SAP consultants around the world.
The ES business is recognised internationally as possessing strong retail SAP expertise as well as Tier 1 retail client referencing capabilities, which HCL Axon would like to position for the global market.
The purchase price payable for the ES Business as a going concern is a cash consideration of R57,1-million. UCS Solutions will settle existing share incentive obligations amounting to R340 000.00.
The Upfront Purchase Consideration becomes due upon the fulfilment of all the conditions precedent and is subject to an upward adjustment to the extent that the ES Business achieves or exceeds certain revenue targets.