JSE-listed electrical and electronic engineering group Reunert Group plans to merge its technology management and consulting firm IQbusiness and digital services firm +OneX subsidiaries into a single client-focused business that brings together their almost 1 500 team members.
The intention is to merge the companies under a single brand to create a digital integrator within Reunert Information and Communications Technology (ICT). The merger will combine technology services, insights, consulting, solutions and managed services under a single business with a Level 1 broad-based black economic empowerment certification, the group states.
Since July 2023, the two companies have coexisted as subsidiaries in the Solutions and Systems Integration Cluster of Reunert ICT. To conclude the merger process, work is under way to integrate and streamline the client- and market-facing activities and to review the systems and processes.
“In recent years, digitalisation has accelerated rapidly for our local and international clients. We are responding by creating greater scale and capability to enable and unlock value for the clients that we serve,” says Reunert ICT Segment CEO Graeme Eddey.
“The merger of IQbusiness and +OneX will expand career paths for our teams and support enhanced opportunities in the global competition for talent, while ensuring that we deliver end-to-end technology solutions to our clients. We plan to grow our local and international presence and advance the South African business and technology services sector,” says +OneX CEO Rob Godlonton.
The intended merger is backed by the subsidiaries' two existing CEOs who are excited about the new direction of Reunert ICT and will undertake key roles in the new business.
IQbusiness CEO Adam Craker is to be the CEO of the merged entity, while Godlonton is expected to assume the role of COO and +OneX finance and operations executive René Bredenkamp the role of CFO.
“The opportunity is clear to expand our client value proposition through a combination of further diversification and penetration in South Africa and beyond. Our clients in the business sector and the public sector have encouraged us to become the local alternative to the international players in our home market and to extend the track record of our uncompromised brands where both local and international firms have faltered,” says Craker.
Further, IQbusiness and +OneX are growth businesses with the two existing CEOs sharing 58 years of cumulative executive experience. The intended combination is part of a shared strategy to expand skillsets and grow together to create value for all stakeholders, Reunert says in a statement.
“The continued investment into the expansion of our ICT Segment by the creation of this Digital Integrator is one of Reunert’s key strategic growth initiative pillars. These growth initiatives, together with our investments into Renewable Energy and Internationalisation, plus Reunert’s core businesses and positive cash generation determines Reunert’s compelling investment case,” says Reunert CEO Alan Dickson.
“Our businesses deliver solid performances because of the strength of our management teams together with our technical prowess, quality products, solutions and services, market positioning and intellectual property.
“The merged business will bring greater synergies and complementarity to the fore, and this management team will compete effectively both locally and internationally,” he adds.
The final decision on the implementation of the merger will be made in the next few months, subject to the fulfilment of certain suspensive conditions, including, among others, obtaining the respective board and shareholder approvals.