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Acquisitions
Acquisition of 100 % interest in Fleetcall (Proprietary)
Limited
The
group acquired 100 % of the issued share capital of
Fleetcall (Proprietary) Limited on 1 March 2009. The
maximum purchase price is R 75 million ,payable in cash.
The purchase price is payable as follows :
- first
tranche : R 48 million
- second tranche : R 27 million
The
second tranche will be paid in terms of an earn out
mechanism over one year based on after tax profit
targets for the year ending February 2010 being
achieved.
The
acquired business contributed revenues of R59 million
and net profit after tax of R17 million to the group.
These amounts have been calculated using the group's
accounting policies and by adjusting the results of
the subsidiaries to reflect amortisation on the fair
value adjustments to intangible assets from 1 March
2009, together with the consequential tax effects.
Fleetcall is the largest trunk two-way radio operator
in South Africa.
Acquisition of 100 % interest in
Lateral Technology Concepts (Proprietary) Limited
("Technology Concepts")
The
group acquired 100 % of the issued share capital of
Technology Concepts on 1 March 2009. The maximum
purchase price is R 45 million payable in cash. The
purchase price is payable as follows :
-
initial payment of R 7.5 million
- the remaining maximum payments of R 37.5 million will
be paid in terms of an earn out mechanism over two years
based on after tax profit targets for the year ending
February 2010 and 2011 being achieved
The
acquired business contributed revenues of R34 million
and net profit after tax of R3 million to the group.
These amounts have been calculated using the group's
accounting policies and by adjusting the results of
the subsidiaries to reflect amortisation on the fair
value adjustments to intangible assets from 1 March
2009, together with the consequential tax effects.
Technology Concepts is an established internet
technology services business and corporate internet
service provider.
Acquisition of 50% in NuPay (Pty)
Limited ("NuPay")
The
group acquired 50% plus 1 share of the issued share
capital of NuPay on 1 June 2009 for a consideration of
R53,5m.
The
acquired business contributed revenues of R74 million
and net profit after tax before allocation of R6
million to the group. If the acquisition had occurred on
1 March 2009, group revenue and net profit after tax
before allocations would have increased by R 99 million
and R 8 million respectively.These amounts have
been calculated using the group's accounting policies
and by adjusting the results of the subsidiaries to
reflect amortisation on the fair value adjustments to
intangible assets from 1 March 2009, together with the
consequential tax effects.
Acquisition of the Altech Netstar
franchisees in Nelspruit and Polokwane
During
the period under review the group acquired 100% of the
Altech Netstar franchisees in Nelspruit and Polokwane.
Revenue
and profit after tax attributable to these acquisitions
are not material. |
