In Business Today

ANSYS Limited acquires Emerging Signals business for R15m

Recently listed engineering and technology company, ANSYS limited, today announced that it has acquired railway signalling contracting company, Emerging Signals (Pty) Ltd, for a total of R15m in a cash and shares transaction.

ANSYS, which listed in June this year, is still negotiating the finalisation of several other acquisitions which it hopes to conclude before the end of the year. As a result, the company remains under a cautionary advisory to shareholders.

ANSYS is a black-owned company which specialises in the design and integration of monitoring and control systems for the transport and defence industries.

ANSYS supplies sophisticated, electronic, Automatic Vehicle Identification systems, Train Conditioning Monitoring systems and Westinghouse Signalling systems to its principal customers, Spoornet and Metrorail. It is also active in the supply of electronic equipment to the mining, power generation and defence industries.

CEO, Alan Holloway, said at the time of listing that the company planned to use the R30m in capital raised to fund future strategic acquisitions.

Emerging Signals (Pty) Ltd is a Transnet Freight Rail approved railway signalling contracting company that undertakes turn-key railway signalling projects for Metrorail and large private sector customers such as Sasol and Impala Platinum. Other services include railway signalling maintenance.

In addition, Holloway says Emerging Signals has a co-operation agreement with GE Transportation Global Signalling which offers unique solutions to a number of the requirements of Transnet Freight Rail and Metrorail.

Emerging Signals CEO Johan van de Pol said that the company had shown excellent growth in recent years. He noted that as part of ANSYS, the business now has the management expertise and financial muscle to move to the next level.

Holloway says ANSYS has worked closely with Emerging Signals for many years and the acquisition is an excellent fit with the ANSYS business.

Says Holloway:

“Through this investment ANSYS will be in a position to offer turn-key railway signalling solutions to Transnet Freight Rail and Metrorail as well as our private sector clients in mining and industry. Furthermore, it will increase ANSYS’ skills and product bases in signalling and give ANSYS annuity income from on-going railway signalling and maintenance contracts.” 

Disclaimer: In Business Today disclaimerThe In Business Today section is reserved for relevant company announcements and releases. Companies are not entitled to have their announcements published in this section, but from time to time, these may be selected by Moneyweb for publication in the interest of the Moneyweb Community of readers. The copy has not been generated by Moneyweb nor should be attributed to Moneyweb. Nor has the information contained therein been verified by Moneyweb journalists. 29 January 2007