Altech acquires software vendor

2010-12-13 12:00

Johannesburg - Technology group Allied Technologies [JSE:ALT] (Altech) said on Monday that it has acquired software vendor Swist Technology Solutions (Swisttech) for R52m.

Altech will pay R30m upfront. The balance is payable over three years and is dependent on specific profit targets being achieved.

The acquisition follows the completion of a satisfactory due diligence of Swisttech by Altech and approval by the board of Altech.

Swisttech is an independent software vendor focusing on infrastructure and integration services, mobility services and software development and is a major billing software vendor in the South African market.

Altech said its purchase of Swisttech unlocks significant synergies with its other operations, in particular Altech ISIS, a telecoms solutions provider and systems integrator with more than 60 million subscribers.

"This acquisition enhances our ability to move up the value chain by providing end-to-end solutions, particularly into the financial services and telecoms industries, in addition to augmenting our earnings profile," said Altech CEO Craig Venter.

The acquisition enables Altech to offer a turnkey billing solution, which Venter said is attractive to network operators.