Technology group Alviva Holdings says it is in talks to acquire privately owned Tarsus, a distributor of IT hardware products.
Alviva, which provides a range of technology products and services including assembling of computers, distribution and software, said on Tuesday the due diligence for the potential deal had been completed and, if successfully concluded, “this transaction may have a material effect” on the share price. 2.62% firmer on Tuesday at R8.22, giving the company a market capitalisation of R1.13bn.
“Distribution is all about scale and efficiency, so it makes sense to become bigger to get more volumes,” said70% of enterprise software company Synerg SA, through its subsidiary DCT Holdings, for R69m. Alviva also took a 51% position in Digital Generation, a black women-owned information and communications technology company,ithin the next two years, “once the intangible assets have been fully amortised, it is expected that these new acquisitions will contribute meaningfully to the group”.
Revenue fell 7% to R14.8bn and headline earnings fell 53% to R197.1m. During the year, the technology group wrote down some of its businesses and made provisions for customers who are struggling to pay debts.
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