South African antenna designer and producer Poynting and provider of professional products, system integration and implementation and commissioning services for the broadcast and telecommunications markets in South Africa, African Union Communications (Aucom), formally concluded the acquisition of Aucom by Poynting in an official ceremony in Johannesburg last month.
The signing ceremony included handing over the signed share certificates by Poynting CEO Andre Fourie to the Aucom shareholders, represented by Aucom MD Villiers Joubert.
Poynting board of directors chairperson Coen Bester formally opened the ceremony and cited the event as being a momentous day for Poynting.
“This is Poynting’s first major deal since its listing on the JSE and we expect that it will more than double the company’s turnover,” he said, adding that Poynting’s board has been united from the outset regarding its undertaking with Aucom.
Bester added that the two companies shared the same values and vision.
Poynting acquired Aucom for R49.5-million through issuing 66-million of its shares with effect from July 1, 2013.
The acquisition enables Poynting to diversify its offering by ramping up the distribution of its digital TV products into the previously untapped African consumer market using third-party service providers.
Aucom regards the joining of forces with Poynting as a huge benefit as it has a strong African network and it will be able to leverage Poynting’s innovative product offering and technical expertise to grow market share.
“The key to this merger is that it will enable considerable expansion as a group. There will be more muscle that will give rise to previously unexplored opportunities and enable us to compete against the big industry players,” noted Joubert.
Fourie expects that the deal will facilitate the raising of additional capital for the development of specific projects to meet the needs of the growing African digital television market.
Both companies iterate that the transaction will not affect business as usual, but will strengthen the commitment to providing innovative products, professional services and delivery.
“The merger is about synergy. Aucom and Poynting are joining forces with the intention of attacking the market,” said Joubert.