Workforce Holdings, listed on the AltX board of the JSE, has acquired OpenSource Intelligent Solutions and OpenSource International with effect from 1 January 2021.
The maximum purchase consideration is approximately R24 million, subject to OpenSource achieving certain performance targets over three years.
OpenSource is a South African and Mauritius based business which was established in 1993. The company places skilled SAP resources on both a contract and permanent basis at clients utilising SAP’s Enterprise Resource Planning system.
In addition, OpenSource also provides SAP training and other services including SAP site maintenance and payroll outsourcing. OpenSource is an accredited SAP partner and resources consultants across all SAP modules and complementary technologies to companies in South Africa as well as internationally.
By way of rationale for the acquisition, Workforce said that this acquisition allows it to further expand its human capital service offering. “This is consistent with Workforce’s previously stated growth and diversification strategy. The acquisition introduces a profitable and specialised business with a broad footprint and a driven, entrepreneurial management team into the Workforce group,” it said.
Ronny Katz, chief executive officer of Workforce, said: “The Opensource Group offers new services as an accredited SAP partner, allowing Workforce to offer leading solutions in a new and diverse market. In addition, this complementary offering provides both Workforce and the Opensource Group with exciting cross selling opportunities within their respective customer bases.”