EOH is splitting into two separate entities, both operating as independent businesses within the group.
The two companies will each have for own brand and identity, growth strategy, go-to-market approach, business model and culture.
EOH describes itself as the largest multi-disciplinary technology services group in Africa comprising diversified businesses across a large number of sectors and markets.
The 20-year-old group, as a result of significant expansion, has 13 000 employees and 5 000 large customers.
One of the new operating companies will retain the EOH brand, and focus on an end-to-end information communication technology (ICT) offering.
The businesses under this umbrella will have an integrated go to market strategy. With cross-industry intellectual property (IP), the business will look at cCross-selling opportunities with existing customers. It will position its market differentiator as highly proficient system integration.
Growth in the EOH business will be mainly organic and driven by new-generation digital technologies.
Approximately 55% of EOH’s group revenue is currently generated by this business.
The second, as yet unnamed, company will offer a high degree of specialisation in each of its business units, with deep levels of expertise and domain-specific IP.
The business units will operate relatively unanimously and will be differentiated by vertical-specific offerings.
The company will operate in high-growth industries.
Growth will be driven equally by acquisitions and organically.
Approximately 45% of EOH’s group revenue is currently generated by this business.
EOH has also announced a long-term strategic partnership wth Lebashe Investment Group that includes a R3,25-billion funding facility and a black economic empowerment (BEE) transaction.
Lebashe is a 100% black-owned investment holding company with a interests in the South African financial and technology sectors.
In terms of the agreement, EOH will establish a long-term strategic partnership with Lebashe.
Lebashe will subscribe for new ordinary EOH shares for R250-million; and EOH will have access to a funding facility for growth in an amount of up to an additional R3-billion.