DIVERSIFICATION
CSG spots the gap in consolidation of security sector
CSG Holdings, the services specialist with PSG Group and African Rainbow Capital as large shareholders, sees opportunity for acquisitions in the South African security sector. Speaking after the release of results for the year to March, CEO Pieter Dry said the fragmented local security sector still offered huge potential for consolidation. CSG has made a number of acquisitions in the sector, most recently buying out Revert Risk Management and Stallion Reaction. "We are keen on security services that are enhanced by technology," he said. CSG accounted for about 0.85% of the nearly R50bn of revenue generated in the South African security sector. In an investment presentation slide, CSG showed that nearly 80% of the security sector was made up of smaller players — outside bigger companies such as Fidelity, Bidvest Protea Coin, G4S, Servest Security and Thorburn. CSG’s acquisition efforts have been aimed at diversifying the company away from its traditional staffing solutions pitch. But...
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