Absa eyes Bytes acquisition: report
The Barclays Africa Group, formerly Absa, is weighing up a move to purchase the automated teller machine (ATM) business of Bytes Technology Group.
This is according to BusinessDay, which cites the deal as a “large transaction” as classified by the Competition Commission.
The paper said that proposed transaction was filed with the competition authorities last month, although its value is undisclosed.
Barclays declined to comment on the deal.
In 2012, Absa contracted Bytes Managed Solutions, to overhaul its entire ATM network across South Africa over a three-year period, while also provide ongoing IT services and support for a five year period.
In July, last year, Bytes, which is a wholly-owned subsidiary of JSE-listed Altron Group, won an Absa ICT contract worth R400 million, to provide services across Africa.
BusinessDay noted that in its annual report for 2013, Altron said that it’s retail ATM base and operations, were being “held for sale”.
The ATM division of Bytes, falls within its Bytes Managed Solutions arm, which saw revenue grow in 2013, by 35% to R1.6 billion. EBITDA improved by 17%, with higher sales of NCR Automated Teller Machines and Point of Sale devices.
Asked by BusinessDay if Bytes Technology was up for sale, Altron TMT chief executive, Craig Venter, said only parts of it. “Bytes is a group of companies. Within this group of companies we are always looking at which businesses are core and which are not.”
Asked about it’s ATM business, Venter said: “We can only make an announcement if a deal has been transacted.”
Altron reached an agreement in April 2014 with Kagiso Tiso Holdings to acquire 27% of BytesSA for R669 million.
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