MBT to acquire SecureData

·21 Nov 2013

MB Tech, a wholly-owned subsidiary of MB Technologies, is set to acquire listed information security company, SecureData for R86.3 million.

Shares in SecureData advanced 5.5% to 38 cents in trade on the JSE on Thursday (21 November), giving the group a market cap of R93.6 million.

MB Technologies is the holding company of Tarsus Technologies, which provides IT services including, inter alia, logistics solutions incentive schemes, training programmes, financing solutions and focused product management strategies.

The deal would see SecureData terminate its listing on the JSE.

“The implementation of the proposed transaction, which will add significantly to the products, services, client base and skills set within the combined businesses, is expected to build scale to both businesses which would benefit from synergies and cost savings resulting in a more efficient organisation with increased diversification,” SecureData said in a statement.

Shareholders, representing in aggregate 80.6% of the SecureData Shares eligible for voting, have voted in favour of a deal between the two companies.

In October, SecureData reported a recovery in operations for the twelve months ended July 2013, following a successful restructuring of the business.

The group improved its revenue R290 million, from R222 million in 2012, with a headline earnings per share of 1.1 cents, from a prior headline loss of 15.2 cents.

Group earnings before interest, taxation, depreciation and amortisation (ebitda) from continued operations showed a small return to profitability to R0.039 million, from a prior loss of R45 million.

Group headcount was reduced from 140 to 104.