Bytes SA acquires 100% of DHS
[Johannesburg, 05 May 2005]
Johannesburg - IT company Bytes Technology Group (BTG) said on Thursday that it has sold its 39.13% interest in Digital Healthcare Solution (DHS) to its 73%-held subsidiary BTG SA and acquired a further 60.87% interest in DHS from Business Connexion Investments, Network Healthcare Holdings and certain of its subsidiaries and USAP No.1 Limited respectively.
The restructure and the acquisition of the interest from BCX was subject to the approval of the competition authorities, it said.
Prior to the restructure, BTG held a 39.13% interest in DHS and following the acquisition and restructure, BTG SA will hold a 100% interest in DHS.
The total consideration for the acquisitions and restructure of R132.15m was settled in cash from the group\'s cash resources.
DHS delivers transaction switching services, medical practice management applications and other informatics solutions to the healthcare industry.
BTG said the rationale for the acquisition was to increase its participation and penetration in the healthcare IT sector and it believes that DHS represents an appropriate medium through which this can be achieved.
"This in turn would be best achieved through a wholly owned operation rather than through an associate company," it added.
Furthermore it has become an imperative for DHS to expedite certain black economic empowerment and transformation initiatives.
The restructure will facilitate these initiatives in that BTG SA is an empowered company, with Kagiso holding a 27% equity interest.
BTG SA has also made significant progress in the transformation arena, all of which can be brought to bear in DHS, Bytes said.
Editorial Contacts
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Tel No : 011 800 -9300
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