IT services company Gijima, owned by Robert Gumede, has bought one of its main rivals T-Systems South Africa for an undisclosed amount.
The transaction is pending Competition Commission approval.
T-Systems South Africa, owned by T-Systems International, the IT services arm of German-based Deutsche Telekom, has been providing ICT networks, applications and systems to South African companies for over 20 years.
This transaction is the result of T-Systems International’s strategic review of its global portfolio and its decision to refocus on its core markets in Europe and the Americas.
The transaction will enable Gijima to have access to international IP, expertise and best practices whilst ensuring Gijima’s current and new acquired clients receive top drawer innovation, best in class service delivery, business efficiencies, security know-how, and lastly securing numerous jobs from the impact of COVID-19.
The acquisition of T-Systems South Africa comes after a successful turnaround strategy for Gijima which focused on implementing an organic growth strategy to enhance its value offerings by working with new clients, highly skilled staff members, and strengthening its partnership with global OEM’s, IT systems and solutions.
Gijima, a proudly 100% black-owned South African Information and Communications Technology (ICT) company, with Level 1 AAA+ B-BBEE status, will also acquire TSSA Cybersecurity Security Operations Centre (SOC) and staff certificates allowing access to a wider reach of companies.
“We are proud of the growth of our business. The transaction is in line with our strategy of servicing our customers in the new digital era,” Gijima Group Chief Executive, Maphum Nxumalo said.
“Our main focus remains the organic growth of Gijima, through working closely with our existing clients by continuously being innovative and increasing efficiencies.”
Gijima remains open and keen to make further strategic acquisitions that will enhance its value proposition.
The signing of this value-enhancing and strategic deal will result in an even more competitive and innovative ICT offering in a rapidly consolidating market. Gijima will now own a Tier 3-level Data Centre which provides it with improved quality infrastructure to create other economic opportunities and expand its portfolio of services to new markets and clients such as retail, manufacturing, private healthcare and automotive.
“Gijima is a good fit as a new local owner of the TSSA business. This transaction will see two Level 1 BEE leaders, with long ICT heritage in South Africa, coming together for the mutual benefit of customers,” said T-Systems South Africa Managing Director, Dr. Rajan Padayachee.
Gijima and T-Systems have a successful track record of seamlessly transitioning clients and staff members.
Upon the acquisition approval from the Competition Commission and in accordance with applicable legislation, highly skilled staff members from T-Systems will join the 2600 existing Gijima family. With 40% of Gijima executive members including CEO, Maphum Nxumalo previously having worked at T-Systems South Africa, both companies are confident that new clients and staff members will be in good, trusted and sturdy hands.