Gijima has acquired the business of T-Systems South Africa (TSSA). The transaction is pending Competition Commission approval.
TSSA, owned by T-Systems International, the IT services arm of German-based Deutsche Telekom, has been providing ICT networks, applications and systems to South African companies for over 20 years.
The transaction is the result of T-Systems International’s strategic review of its global portfolio and its decision to refocus on its core markets in Europe and the Americas. It will give Gijima access to international IP, expertise and best practices.
The acquisition of TSSA comes after a successful turnaround strategy for Gijima, which focused on implementing an organic growth strategy to enhance its value offerings by working with new clients, skilled staff members, and strengthening its partnership with global OEM’s, IT systems and solutions.
Gijima, a 100% black-owned South African ICT company, with Level 1 AAA+ B-BBEE status, will also acquire TSSA Cybersecurity Security Operations Centre (SOC) and staff certificates, allowing access to a wider reach of companies.
Maphum Nxumalo, group chief executive of Gijima, says: “We are proud of the growth of our business. The transaction is in line with our strategy of servicing our customers in the new digital era. Our main focus remains the organic growth of Gijima, through working closely with our existing clients by continuously being innovative and increasing efficiencies.”
He adds that Gijima remains open to further strategic acquisitions that will enhance its value proposition.
After the transaction, Gijima will now own a Tier 3-level Data Centre which provides it with improved quality infrastructure to create other economic opportunities and expand its portfolio of services to new markets and clients such as retail, manufacturing, private healthcare and automotive.
“Gijima is a good fit as a new local owner of the TSSA business. This transaction will see two Level 1 BEE leaders, with long ICT heritage in South Africa, coming together for the mutual benefit of customers,” says Dr. Rajan Padayachee, MD of TSSA.
Upon acquisition approval from the Competition Commission and in accordance with applicable legislation, staff members from T-Systems will join the 2600 existing Gijima family.