AltX listed Ellies Holdings announced that it has acquired the business of Consolidated Associated Technology (CAT) for a maximum purchase price of R18 million. The purchase consideration payable will be settled by the payment in cash of a maximum of R9 million and the balance by the issue of ordinary shares in Ellies.
Wayne Samson, CEO of Ellies, said, “The acquisition was prompted by our desire to better service our customers who made us aware of their need to improve their security.”
The CAT business focuses nationally on the design and deployment of electronic security solutions for corporate and domestic security eg, CCTV, access control and fibre solutions. The CAT business offers full technical and on-site support, system maintenance and monitoring and after hours management assistance.
The CAT business team will be incorporated into the Ellies Corporate Division. There are various synergies in the businesses such as customers, cross selling solutions and rentals.
Ellies has built its 30-year-old business around identifying a gap in the market and thereafter vertically integrating all services associated with a particular product. For example, the company manufactures, distributes and installs television satellite equipment. In addition, their electrical products such as plugs and extension cords are also manufactured and distributed ready packaged to be placed directly onto store shelves.
The acquisition has been approved by the Ellies executive committee based on suspensive conditions such financial and legal due diligence.
For more information contact Wayne Samson, Ellies Holdings, +27 (0)11 490 3840.
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