Gijima, the IT services group founded by businessman Robert Gumede, has agreed to acquire the South African subsidiary of T-Systems, the IT services arm of German telecommunications giant Deutsche Telekom.
The transaction, the value of which has not been disclosed, must still be approved by the Competition Commission. T-Systems has been a service provider in the South African market for more than 20 years.
“This 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,” Gijima said in an e-mailed statement on Tuesday.
“The transaction will enable Gijima to have access to international IP, expertise and best practices while ensuring Gijima’s current and newly acquired clients receive top-drawer innovation, best-in-class service delivery, business efficiencies and security know-how, and lastly securing numerous jobs from the impact of Covid-19,” it said.
The deal comes after Gijima, which used to be listed on the JSE, concluded a “successful turnaround strategy”. Gijima CEO Maphum Nxumalo said the company is “open and keen to make further strategic acquisitions that will enhance its value proposition”.
The deal means Gijima will now own a tier-3 data centre, among other assets. It will also acquire T-Systems’ Cybersecurity Security Operations Centre and staff certificates, “allowing access to a wider reach of companies”.
“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,” said T-Systems South Africa MD Rajan Padayachee.
It’s not immediately clear if there will be any staff redundancies as a result of the acquisition. However, Gijima said once the Competition Commission has given the deal the green light, “and in accordance with applicable legislation, highly skilled staff members from T-Systems will join the 2 600 existing (employee) Gijima family”.
“With 40% of Gijima executive members including CEO Maphum Nxumalo previously having worked at TSSA, both companies are confident that new clients and staff members will be in good, trusted and sturdy hands,” it said. – © 2020 NewsCentral Media
Duncan McLeod is Editor of TechCentral. This article was first published on TechCentral, here.