Poynting acquired Aucom for R49.5 million by way of the issue of 66 million Poynting shares.
On 11 March 2014, Poynting, SA’s largest wireless antenna designer and producer, and African Union Communications (Aucom) formally concluded the acquisition of Aucom by Poynting in an official ceremony in Rosebank, Johannesburg.
The signing ceremony included handing over of the signed shares by Poynting’s CEO, Andre Fourie, to the Aucom vendors (or shareholders), led by Villiers Joubert, Aucom MD and founder of the company. The acquisition formalises what already appears to be a close-knit team with an existing, strong partnership.
At the signing ceremony, Coen Bester, chairman of Poynting’s board of directors, formally opened the ceremony. He cited the event as being a momentous day for Poynting: “This is Poynting’s first major deal since listing on the JSE, and we anticipate that it will more than double the company’s turnover. Poynting’s board has been united from the outset regarding this undertaking with Aucom, given that our companies and people share the same values and vision.” Poynting has acquired Aucom for R49.5 million by way of the issue of 66 million Poynting shares with effect from 1 July 2013. The acquisition enables Poynting to diversify its offering by ramping up the distribution of its digital TV products via third-party service providers into the previously untapped African consumer market.
Aucom is a Pretoria-based provider of professional products, system integration and implementation, and commissioning services to the broadcast and telecommunications markets in South Africa and beyond. Joining forces with Poynting is a huge benefit to Aucom in that the company, with its strong African network, will be able to leverage Poynting’s innovative product offering and technical expertise to grow market share.
Joubert says of the deal: “The key to this merger is that it will enable considerable expansion as a group. There will be more muscle that will give rise to previously unexplored opportunities and enable us to compete against the big industry players.”
Fourie anticipates the deal will facilitate the raising of additional capital for the development of specific projects to meet the needs of the growing African digital television market.
Both companies iterate that the transaction will not affect business as usual, but will strengthen the commitment to providing innovative products, professional services and delivery. As Joubert states: “The merger is about synergy. Aucom and Poynting are joining forces with the intention of attacking the market.”