CAPE TOWN – AYO Technology Solutions (AYO) plans to acquire 100 percent of Kathea Communication, and 60 percent stake Kathea Energy in deals worth R125.8million.
The acquisitions form part of AYO’s planned expansion and will see the group take a position in the rapidly evolving unified communication sector, and its first foray into the alternative energy space.
AYO group chief executive Howard Plaatjes said they were looking to invest in disruptive technologies that can add value to South Africa and assist the country in dealing with a future that includes smart living and smart working. South Africa is also heavily impacted by climate change and a lack of reliable energy supply.
“Clean and renewable energy has become an imperative, and demand will continue to grow as the planet’s resources are depleted, especially if we do not come up with the necessary solutions now,” said Plaatjes.
He said the transactions supported the group’s thinking in regard to South Africa’s people-planet sustainability, and the group looked forward to welcoming Kathea Communications and Kathea Energy into its operations.
Kathea Communication is a value added distributor of voice, audio visual, video conferencing and workspace management products solutions and services, and represents some of the top brands the communication, collaboration, audio visual and workspace technology arenas. Its products include the likes of Jabra, Poly, CTouch, Logitech and Yealink.
Peter Cowen, CEO of Kathea Communications, remarked: “AYO already has good exposure to the communication and collaboration space with a track record of providing good support to their investments, and so we look forward to combining our highly regarded excellence in this sector with their well-funded strategic ambitions.
“With disruptions to working norms around the globe providing greater emphasis on remote collaboration and effective management of workspaces, Kathea Communication’s offerings have never been more relevant. Global trends combined with SA-specific challenges in power production, set the scene for high growth in the Kathea Energy business and it is for these reasons that both businesses look forward with confidence to complementing the AYO portfolio.”
AYO has existing interests in this sector with its stake in Headset Solutions, and the acquisition of Kathea Communication represented a significant portion of a fast growing market.
Kathea Energy is a value-added distributor of alternative energy solutions and represents some of the top brands in the alternative energy sector, with brand such as Tesla, LG Chem, Huawei, Byd and Schletter, among others.
A six month exclusivity agreement had been signed between the parties.