Alviva to acquire Synerg Group

JSE-listed ICT products and services provider, Alviva is set to acquire 70% of Synerg SA, through its subsidiary DCT Holdings.

And through its subsidiary Alviva International Investments, it has also entered into sale of shares agreements to acquire 51% of Synerg UAE and Synerg UK – the Synerg Group.

The Synerg Group mainly consists of five trading companies, namely Synerg SA, including subsidiaries, SynergIT and Synerg300. In addition, it has two newly established regional operations, one in the United Kingdom, Synerg UK, and one in the United Arab Emirates, Synerg UAE.

Synerg was established in 1993 and has been a Sage Reseller for over 25 years.

The business is currently dedicated to the Enterprise Management Software suite (also known as Sage X3 and Sage X3 People) and supports global organisations through its offices in South Africa, United Kingdom and Middle East.

“Alviva has increased its business exposure in the IT services and solutions space, a focus area of our acquisition strategy. The Synerg Group will be an additional investment in this lucrative sector of the IT industry,” Alviva said by way of rationale for the purchase.

The purchase price of R90.1 million for a 70% shareholding in Synerg SA, is payable in cash in two instalments.

Payment 1 is for R63.1 million, representing 70% of the total price payable. Payment 2 is for R27 million, subject to a price adjustment formula linked to the actual profits achieved by Synerg SA in respect of the financial year ending 31 December 2019.

The maximum purchase price payable by DCT for SynergSA is R108 million.


Read: Alviva revenue lifted by its ICT distribution segment

Latest news

Partner Content

Show comments

Follow us

Recommended

Alviva to acquire Synerg Group