Alviva has announced that it has entered into a share purchase agreement to acquire Tarsus for a maximum purchase consideration of R185,388,000.
Established in 1985, Tarsus is known for distributing some of the world’s most prominent IT brands to the Southern African reseller channel.
The Tarsus Group has two main operating subsidiaries – Tarsus Distribution and Tarsus on Demand, which operates a cloud solutions business.
Excluded from the transaction is the GAAP Point-of-Sale software business, which will be distributed, prior to Alviva’s acquisition, to the current shareholders.
Alviva said the acquisition of Tarsus is pursued primarily for the following reasons:
- Expansion of the current IT distribution businesses into the retail customer segment where Alviva has limited exposure.
- Expansion of the product baskets by adding new vendors.
- Further expansion into Africa where Tarsus’ business exceeds R670 million in revenue.
- Growth in the cloud solutions business. Tarsus’ cloud business is significantly larger than that of Alviva.
Upon implementation of the Acquisition, Tarsus will become a subsidiary of Alviva.