The Competition Commission recommends the Competition Tribunal approve the transaction without conditions.
Reunert has received authority from competition authorities to finalize an agreement to buy almost three-quarters of IT consulting business IQbusiness for an undisclosed amount.
Reunert, which is valued at about R11bn on the JSE, has operations that include the design and manufacturing of electrical conductors, cables and accessories, as well as ICT-related services for businesses. It also has niche businesses that cover communications and radar systems.
The deal is for a 74.2% stake in IQbusiness, one of SA’s largest management and technology consulting firms. It generates more than R1bn in revenue and employs more than 1,000 people offering insights, consulting and contracting across consumer convergence in the financial services, retail and telecommunications sectors and the manufacturing industry.
Earlier in the year, Reunert said joining forces with IQbusiness “aligns to our strategic intent to create the leading SA ICT company and provides offerings and capabilities in business optimisation, solutions and systems integration focusing on digital business transformation through data science, cloud adoption, artificial intelligence, cyber security and the internet of things”.
The transaction will boost Reunert’s delivery of end-to-end technology solutions to its 40,000 clients across industries in multiple countries.
Source: Business Day