Gijima has announced that it has acquired T-Systems South Africa (TSSA), with the transaction currently pending Competition Commission approval.
TSSA was owned by T-Systems International, the IT services arm of German-based Deutsche Telekom, and has been providing ICT networks, applications and systems to South African companies for more than 20 years.
The transaction follows T-Systems’ refocusing on its core markets in Europe and the Americas, the company said.
As a result of the acquisition, Gijima will have access to TSSA’s international IP and expertise while securing numerous jobs from the impact of COVID-19.
Gijima said it has successfully implemented its turnaround strategy, which focused on implementing an organic growth strategy to enhance its value offerings by working with new clients, highly skilled staff members, and strengthening its partnership with global OEMs.
Gijima will also acquire TSSA Cybersecurity Security Operations Centre (SOC) and staff certificates, allowing access to a wider reach of companies.
“The transaction is in line with our strategy of servicing our customers in the new digital era,” said Gijima Group Chief Executive Maphum Nxumalo.
“Our main focus remains the organic growth of Gijima, through working closely with our existing clients by continuously being innovative and increasing efficiencies.”
Gijima remains open and keen to make further strategic acquisitions that will enhance its value proposition, the company said.
The acquisition will also see Gijima become the owner of a tier 3 data centre which provides it with improved quality infrastructure to create other economic opportunities and expand its portfolio of services to new markets and clients such as retail, manufacturing, private healthcare and automotive.
“Gijima is a good fit as a new local owner of the TSSA business,” said TSSA managing director Dr Rajan Padayachee.
“This transaction will see two Level 1 BEE leaders, with long ICT heritage in South Africa, coming together for the mutual benefit of customers.”
Upon the acquisition approval from the Competition Commission, highly skilled staff members from T-Systems will join the 2,600 existing Gijima employees.
With 40% of Gijima executive members including CEO Maphum Nxumalo previously having worked at TSSA, both companies said they are confident that new clients and staff members will be in good hands.