AYO Technology Solutions is acquiring a 55% equity stake in Sizwe Africa IT Group for an estimated R165-million.

The investment into Sizwe is set to more than double AYO’s revenue and significantly contribute to growing its bottom line.

Sizwe has a broad base of blue chip private customers and public sector customers with strong annuity based income. The business shows strong cash generation with cash from operations of around R75-million and EBITDA of R70-million for the year ending 30 June 2018, and is expected to increase year on year.

Formed in 2001, Sizwe offers various ICT services to its customers, including a focused spectrum of physical infrastructure, metro and long distance optic fibre, facility management, continuous energy supply, networking and security to hosting, storage server processing, mobility, data centre, end-user computing and associated consumables.

Sizwe operates in four concentrated business units, namely Managed Services; Unified Network Solutions; Fibre & Facilities Management and Systems Integration that service and have long standing relationships with both public and private sector companies.

Some of Sizwe’s clients include: CELL C, Eẍẍaro, Gems, GAS, FIBRECO, Metrofibre Networx, Vodacom, Barloworld, Liquid Telecom South Africa (Previously known as Neotel)l, Technology Innovation Agency, SITA, ACSA, The Western Cape Education Department, The Departments of Agriculture, Forestry and Fisheries, Gauteng Provincial Government, Department of Correctional Services, City of Tshwane, City of Cape Town, The Department of Communications, The Department of Justice and Constitutional Development, Department of Health and Social Development, Ethekwini Municipality, Prasa, IDC, National Prosecuting Authority, Gauteng Province Education, and The Department of Tourism, among others.

Naahied Gamieldien, acting CEO of AYO, comments: “The transaction is significant for AYO with its additional estimated R1 billion annual revenue to the Group, and is in line with its strategy to use Group synergy to create stakeholder value through innovative products and services. Sizwe’s business model directly complements that of AYO’s, which will facilitate the growth prospects within the AYO Group.”

Group CEO of Sizwe Hanno van Dyk says: “We are exceptionally proud to enter into this transaction and partner with AYO, and the future prospects for the Sizwe/AYO partnership looks brighter and we are very excited by the transaction. Sizwe’s commitment to its Transformation Strategy is echoed by the transaction with AYO. After 5 years of remarkable organic growth, Sizwe is now focused on the next level of development with our product, services and synergy with AYO. This transaction will see Sizwe move to become a majority black-owned company.”