JSE-listed tech firm Jasco announced on Thursday that it is planning to buy 51% of Reflex Solutions for R39.8 million to enhance its enterprise business.
The group said the acquisition of Reflex Solutions would ensure its enterprise offering in the blue-chip corporate market is now further enhanced by being able to supply IT WAN (wide area network) / LAN (local area network), desktop and server managed services, hosted IT Infrastructure, cloud unified communications and contact centre solutions.
The deal would also enable the company to gain access to the lucrative growth market of Fibre-to-the-Home (FTTH) solutions.
Reflex was established in 2000 by Greg Wilson in Johannesburg and initially specialised in the IT managed services market before adding hosted IT Infrastructure, cloud services and more recently FTTH solutions.
Its operations cover Johannesburg, Cape Town, Port Elizabeth and Durban. Its blue-chip customer base spans the retail, logistics, education, telecommunications and financial services industries. It has a solid track record of double-digit revenue growth since 2013, with consistent operating margins above 10%.
Jasco said this acquisition would further expand its existing customer base within these sectors.
The JSE-listed tech group informed investors on Thursday that the deal would also enable the company to further expand its PaaS (Platform as a Service) offering through Reflex’s VM (Virtual Machine) server environment.
Reflex operates its own NOC (Network Operation Centre) and SOC (Service Operations Centre), which will enable Jasco to offer proactive monitoring services to its existing customer base.
The finalisation of the deal is subject to a fulfilment of various conditions.