JSE-listed Jasco Electronics has acquired a majority 51% stake in Johannesburg-based information technology (IT) managed services group Reflex Solutions for R39.8-million.
The acquisition of Reflex, which recently expanded into fibre-to-the-home (FTTH) solutions, adding to a portfolio of hosted IT infrastructure and cloud services, would lift Jasco up the value chain towards a higher-margin professional service and annuity-based offering.
“This acquisition is another step in the group’s strategy of measured acquisitions that either bulk up existing business units or fill gaps in our portfolio to supplement organic growth,” explained Jasco CEO Pete da Silva.
The move would boost Jasco’s enterprise offering in the blue-chip corporate market; enhance its existing customer base within the retail, logistics, education, telecommunications and financial services industry; and would assist the group in breaking into the lucrative FTTH growth market.
Reflex’s operations cover Johannesburg, Cape Town, Port Elizabeth and Durban, with a double-digit revenue growth record since 2014 and consistent operating margins above 10%.
The current management team and founder will stay with the company for at least two years.