Business11.10.2024

South African computer giant in R20-million cybersecurity play

Mustek has acquired a majority stake in security operations centre-as-a-service provider Cyberantix from Sizwe Africa IT in a R20-million deal.

The transaction comprises a transfer of R8 million in shares and a R12 million shareholder loan for 70% of CyberAntix.

Multinational IT service provider NIL Data Africa will continue to hold the remaining 30% interest in CyberAntix.

Ayo Technologies first announced the transaction in a notice published on the JSE news service after the market closed on Wednesday.

It holds an indirect 55% stake in Sizwe Africa IT through Zaloserve, an investment holding company with a 100% shareholding in Opiwize, which in turn has a 100% shareholding in Sizwe.

Mustek previously held a stake in Zaloserve, which it impaired and held as an asset for sale since 30 June 2024.

The company has since exited its Sizwe IT stake, and as part of that separation, Mustek has taken 70% of Cyberantix.

Ayo said that Sizwe sold Cyberantix because its clients were not aligned with its strategic priorities.

“While the business has significant growth potential, this is expected over the medium to long term and will require further investment to become fully scalable,” Ayo stated.

“As a result, management believes it would be more advantageous to partner with an already existing scaled cybersecurity company capable of executing the larger projects currently undertaken by the company.”

Ayo said the proceeds from the sale will allow Sizwe to allocate resources toward other strategic priorities within the company.

“Sizwe is actively engaging with cybersecurity partners in the market with the aim of securing a partnership by the end of 2024,” it said.

Mustek chief marketing officer Nicole Orr told MyBroadband that they acquired Cyberantix to support their diversification strategy and capitalise on the increasing demand for cybersecurity products and services.

Orr said Mustek was specifically looking to expand its newly formed cloud and software division and security services business segment.

She added that the acquisition allows Mustek to offer its resellers and customer base a broader range of solutions and services.

“It was really a no-brainer in terms of expanding on Mustek’s product portfolio, specifically on the software and the security side of the business,” said Orr.

Orr said Mustek also aims to leverage Cyberantix’s expertise to expand further into the African market.

She said that they are busy finalising a rebranding that will better incorporate Cyberantix into the Mustek Group, adding that the business will still operate independently.

In an interview with MyBroadband, Cyberantix co-founder and general manager Morne Terblanche said he could not yet provide a report on the company’s revenues and profits.

However, he said that Cyberantix is a well-established company that has been in business for four years, which can operate independently.

Together with Pierre Jacobs, head of operations and compliance at Cyberantix, Terblanche explained that their expertise is ingesting data from customer networks and providing a complete picture of their security situation.

Cyberantix offers a range of services, including vulnerability scanning, threat detection, incident response, and security awareness training.

These services help organisations mitigate cyber risks and protect their valuable assets.

Cyberantix can supply customers with security systems and services wherever they have gaps, or integrate with products they already use.

They also offer service level agreements with short turnaround times to respond to and mitigate security incidents.

Terblanche and Jacobs said they are exploring partnerships with insurance companies to offer cybersecurity solutions as part of insurance packages.

This could create new revenue streams for Mustek and provide added value to its customers.

Cyberantix’s services can be white-labeled, allowing Mustek to offer them under its own brand.

This flexibility enables Mustek to tailor its offerings to specific customer requirements and strengthen its brand presence in the cybersecurity market.

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