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Sizwe IT Group announces completion of buy-out from the ConvergeNet Group

Sizwe IT Group has announced the buy-out of the company and its subsidiaries from the ConvergeNet Group.

Monday December 2, 2013 - Pretoria, South Africa

Sizwe IT Group, a leading Level 2 B-BBEE accredited ICT services company, has announced the buy-out of the company and its subsidiaries from the ConvergeNet Group with some regulatory conditions to be fulfilled. The transaction, valued at R120 million, was effective as of 1 September 2013.

The new shareholding structure includes Alexisource (Pty) Ltd – represented by Hanno van Dyk; and Loxisource (Pty) Ltd – with shares held by Ms Sibongile Radebe and Mendo Cables (Pty) Ltd. Sizwe is also finalising a further BEE transaction which will put the revised shareholding into the hands of a very strong BEE contributor.

Tim Modise has resigned as CEO, effective 30 November 2013, and sold his shares in the company. Modise will be pursuing new ventures within the ICT sector and will continue to consult to Sizwe on an ad hoc basis. He is succeeded by Hanno van Dyk, who will assume the role of CEO.

"The board would like to extend their warmest thanks to Mr Modise for his outstanding leadership and service to the company. We have learned a great deal from his knowledge and vision, and wish him well in his future endeavours," says Hanno van Dyk.

Mr van Dyk, formally Sizwe's Chief Financial Officer, studied accountancy and practiced as an accountant in a civil engineering concern for a few years. He entered the IT sector as an entrepreneur to successfully run his own business for a period of six years, before founding Sizwe with Mr Ben Kekana in 2001.

Mr van Dyk will be supported by a strong management team including Mr Jos Matthysen – Executive: Managed Services, Mr Wimpie Jonck – Executive: Unified Network Solutions, Mr Rudi Fourie – Executive: Fibre and Facilities Management, Mr Minderd Spoelstra – Executive: Partners, Products and Solutions, Ms Sibongile Radebe – Executive: Corporate Development and Mr Sagie Naidoo – Group Financial Manager.

The restructuring has also seen changes to the board. The new board will be chaired by Reverend Dr Vukile Mehana, and will include Hanno van Dyk, Sibongile Radebe, Sagie Naidoo, Minderd Spoelstra and Steve Naude.

Mr van Dyk says: "While the past two years have seen little revenue growth, the restructuring process completed during August 2013 aligns the business with current challenges facing the ICT sector, and we are already seeing a difference in client service delivery levels and revenue. Going forward, we see growth in the Managed Services, Unified Communications and the Fibre and Facilities businesses. Our experienced management team, with the support of technology partners and vendors will deliver on our growth targets for 2014."

According to Sizwe Chairman, Reverend Dr Vukile Mehana, "I am extremely pleased to be involved with Sizwe which has demonstrated itself as a robust ICT service provider. Sizwe is ideally positioned to provide innovative solutions to the public and private sector, particularly at a time when technology is a key enabler of the delivery of services in the South African socio economic space, especially in the health and education sectors."

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