NamITech Buys Velocit-e
Page 1 of 1
CAPE TOWN -- R68 million - that's how much secure solutions IT company NamITech is paying in cash and shares for Velocit-e, an electronic security transaction specialist.
According to a release, NamITech's main reason for the merger is accelerating its growth in the IT security industry a growing market, judging by the increase in reported cybercrime and the amount of media coverage it receives.
Velocit-e needed the cash. Charles Laxton comments, "while Velocit-e had established a successful track record in the provision of innovative cashless and electronic security solutions, our ability to exploit this technology, both locally and globally, has been hampered by limited financial and management resources."
Namitech's current focus according to Rex Tomlinson, Chairman of the company, lies in cashless payment solutions (they operate the Mpumalanga pension payment system, for example) and access security. Biometrics (according to Tomlinson) and SmartCards (according to the company website) are the two technologies used to create these solutions.
The merger will only be finalized when the Competitions Commission has had its say, a process that normally takes 20 days, although this period can be extended. Tomlinson foresees no difficulties in getting the Commission's approval, stating that it is a legal requirement for any business acquisition or merger above a certain amount to be put before the Commission.
The Commission will only look to see if the merger provides NamITech excessive market share and Tomlinson believes, given the size of the IT security industry, the merger will in no way result in the company gaining market dominance.
Velocit-e will move into NamITech's Linbro Business Park offices; however, the Velocit-e brand will still be maintained within the NamITech group of companies.