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Sponsor's Message
29 June 2001
Glotec makes new acquisition, two minority buyouts
BY
BRONWEN KAUSCH
[
29 June 2001
] -
Global Technology (Glotec) has acquired Investment Technology Solutions (ITS) and the minority shareholdings in Capacity Building Services (CBS) and Xpert Risk Management. Glotec acquired 51% shareholdings in both CBS and Xpert in November 1998.
The new minority buyouts will be settled with Glotec shares at a purchase consideration of R5 million each. The ITS acquisition will be settled with a R3 million cash payout with earn-outs attached.
According to Glotec management, the acquisitions will strengthen the company's enterprise offering to the financial community in which it is a niche operator.
"The acquisition of ITS, developer and distributor of life assurance and investment software I-Trac, is an extremely important move for Global Technology, as it extends our offerings to the long-term insurance market,” says Ray Leonard, Glotec CEO.
“With the lines between financial services blurring, it is absolutely vital for us to be able to offer an integrated, end-to-end enterprise solution, encompassing banking, investments, and short- and long-term insurance to our clients."
I-Trac is designed to focus on the requirements of financial intermediaries. The software enables effective practice management via client, portfolio and business management tools. It is geared to provide a compliant environment that meets the legislative requirements of the Financial Advisory and Intermediaries Bill.
CBS forms the core of the Glotec's Enterprise Business Solutions business unit, facilitating the implementation of all of Glotec's software, consulting and project management services.
Xpert's primary product offering, CAEMS, addresses risk management and will continue to be sold and marketed through Global Technology Banking.
Glotec financial director Gavin Leonard says the minority buyouts make sense as the companies both fit in extremely well with Glotec, and have been managed by the company for the past three years with no hiccups.
Commenting on the local market's lack of enthusiasm for the Temenos listing, Leonard says the timing of the listing was unfortunate given international markets causing a lower than expected list price.
However, he believes that given the inherent value in Glotec, the company's share price is still very undervalued.
The Glotec share was trading at 155c at noon today.
Related stories:
Temenos' Swiss listing misses forecast
The new minority buyouts will be settled with Glotec shares at a purchase consideration of R5 million each. The ITS acquisition will be settled with a R3 million cash payout with earn-outs attached.
According to Glotec management, the acquisitions will strengthen the company's enterprise offering to the financial community in which it is a niche operator.
"The acquisition of ITS, developer and distributor of life assurance and investment software I-Trac, is an extremely important move for Global Technology, as it extends our offerings to the long-term insurance market,” says Ray Leonard, Glotec CEO.
“With the lines between financial services blurring, it is absolutely vital for us to be able to offer an integrated, end-to-end enterprise solution, encompassing banking, investments, and short- and long-term insurance to our clients."
I-Trac is designed to focus on the requirements of financial intermediaries. The software enables effective practice management via client, portfolio and business management tools. It is geared to provide a compliant environment that meets the legislative requirements of the Financial Advisory and Intermediaries Bill.
CBS forms the core of the Glotec's Enterprise Business Solutions business unit, facilitating the implementation of all of Glotec's software, consulting and project management services.
Xpert's primary product offering, CAEMS, addresses risk management and will continue to be sold and marketed through Global Technology Banking.
Glotec financial director Gavin Leonard says the minority buyouts make sense as the companies both fit in extremely well with Glotec, and have been managed by the company for the past three years with no hiccups.
Commenting on the local market's lack of enthusiasm for the Temenos listing, Leonard says the timing of the listing was unfortunate given international markets causing a lower than expected list price.
However, he believes that given the inherent value in Glotec, the company's share price is still very undervalued.
The Glotec share was trading at 155c at noon today.
Related stories:
Temenos' Swiss listing misses forecast
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