Telkom acquires Business Connections, strengthens operations
Business Connexion Group has merged with Telkom South Africa. Done in a landmark industry deal, the former now adopts BCX as its name formally. Both are South African firms with global footprints.
According to information gathered by The Guardian, the process of acquisition actually started in 2013, when Telkom SA embarked on a strategy to improve performance, with one key considerations of the strategy being to grow beyond its core business of connectivity by expanding into Information and Communication Technology (ICT) services. The deal was formerly sealed on August 24, 2015 and brand launch took place last week in Johannesburg, South Africa.
The implication of this synergy will see improvement in Telkom services, especially as it relates to IT operations in South Africa, while in Nigeria, which has an arm of BCX, the coming together would see the company provide more services beyond the usual Business to Business (B2B) to Human to Human (H2H) operations.
According to the Managing Director, BCX, Ayo Adegboye, who formally informed the press about this development last Tuesday, said that this synergy is a business transformation targeted at improving services and offer customers more access at both ends.
Adegboye, who stressed that the new strategy would offer customers more, added that because of the vertical integration leading to horizontal integration, BCX would become Africa’s end-to-end digital solution provider.
“Although, this is an acquisition, but the two firms are bringing together their capabilities to be able to deliver more for the customers. It is something that should happen. BCX is an IT company and encourages more digital transformation. Telkom, a telecom operator now to tap from our IT capabilities and it will result in improved converged technology across countries of operations,” he stated.
Denouncing any form of job cuts at the Nigerian end as a result of the acquisition, the BCX boss rather posited that coming together of the two firms would create more jobs, “as there will be room to employ more seasoned individuals who will be willing to add value to the business. The focus is about the future development.”
He stressed that the merger was necessary, which will make the company to be ahead of competition, especially now that the world goes converged.
According to the Chief Financial Officer, BCX, Mrs. Olusike Bamisebi, the acquisition has nothing to do with either firm been illiquid, “but to further strengthen value propositions for customers. What Telkom bought into was not a weak business. BCX is listed on the Johannesburg Stock Exchange. Telkom actually bought into our strengthen. What they wanted to tap into because they won’t be able to do it as much as we do was ICT and that is our primary business and secondary to Telkom. They bought us so that they can leverage on our footprints and expertise across countries of operations.”
Bamisebi, who said BCX is a 20 billion Rand business with 8000 employees, further explained that Telkom business division had to move into Business Connection to then have a merge name BCX. “We pride ourself to say that Business Connection is not moving into Telkom, but other way. We have footprints in Europe, Middle East and Africa.”
According to her, BCX offers clients a full range of IT solutions and services that can meet all their ICT needs from business consulting to communication, data centre management to acclaimed information security services, the firm has the expertise and wherewithal to effectively help client’s regardless of the scale and scope of the professional services solutions they require.