MagmaTec, Comprehend IT agree to merger

Posted by batman on Mar 7th, 2010
2010
Mar 7

Two of South Africa’s ICT companies, MagmaTec and Comprehend IT, today announced that they have reached an agreement to merge their companies.

Merger talks have been ongoing for a few months now and the boards of directors of both companies agreed in principle to the terms of the transaction at a joint board meeting held on Thursday, 30 July 2009.

A merger committee, representing both businesses and functional areas, has been established to finalise the transaction and oversee the combined strategy and transition of the new company that will now employ over 100 IT professionals; and a number of key announcements on services, products and branding will be made during the coming months.

“We’re excited to announce this transaction or partnership as we prefer to call it. It enables us to position MagmaTec for future growth in offering multiple technology platforms to our clients and more,” said Stuart Phillips, MD of MagmaTec. “We’ll be able to leverage Comprehend IT’s knowledge, capability and experience in the Microsoft .Net arena, their international experience and innovative products and applications in the mobile and Internet arenas.”

MagmaTec remains focused on supporting the IT strategy and complementing the development capability of financial services clients by offering systems development, integration, support and consulting services through all phases of the systems life cycle, focused largely on Java technology protocol. MagmaTec was recently awarded Level 1 BEE status and has a client base that includes FirstRand, Momentum, Discovery, Old Mutual and JP Morgan, among others.

Similarly, Comprehend IT was started in 1998 and is well established in the retail, marketing, health and publishing sectors as a software development company that offers consulting, analysis, architecture and design, development and training using .Net capabilities. Comprehend IT’s enterprising culture extends to the support they offer to budding entrepreneurs, and a separate division is focused on providing support, infrastructure and funding options to start-up companies or entrepreneurs that have developed cutting-edge applications in the mobile and online space. These products are taken to market and supported as separate divisions, operating on an international basis.

“As companies continue to outsource elements of their IT capability to a greater or lesser extent given their ever-changing circumstances, this merger will position us to assist them in responding to their needs irrespective of their technology strategy. We are truly an IT partner to companies of all sizes,” adds Robert Marshall, CEO, Comprehend IT. “Both MagmaTec and ourselves have well entrenched cultures within our business with staff that have been there from the beginning. In MagmaTec we’ve not only found a technology partner, but a company that shares our vision and ethos.”

While both companies will realise economies of scale through infrastructure sharing and will not be rationalising any staff, taking advantage of new market opportunities, a richer customer offering, realising synergies and an expanded product and service offering were the primary drivers for this deal. “We’re combining our resources and not retrenching anyone as we gear the businesses to take advantage of new and much larger opportunities here and abroad. For a while it’ll be business as usual for our staff and customers; however, our customers will start benefiting from an expanded product and service offering and a depth of knowledge that extends the full technology spectrum,” concludes Phillips.

ITWeb Press Release

Magmatec Homepage

Comprehend IT Homepage

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