Ayo Technology Solutions sets eyes on acquisitions
Company raised R4.3bn on the JSE in December and intends to use part of its war chest on growth opportunities
Ayo Technology Solutions, which raised R4.3bn when it listed on the JSE in December, has already identified a number of potential acquisition targets in SA, says Khalid Abdulla, CEO of African Equity Empowerment Investments (AEEI), which holds 49% of Ayo. "We’ve got quite a few companies targeted or earmarked for acquisition over the next three, six or 12 months, and we will obviously make sure we don’t overpay for them," Abdulla indicated in a wide-ranging interview on Wednesday. The company aimed to pay in the range of four to six times earnings for its targets, or more if the company was a good strategic fit, and would avoid issuing too many new shares so as to protect shareholder value. Ayo’s funding reserves and black empowerment credentials would help it to "negotiate better deals", said Abdulla, adding that the company would spend most of its new war chest on acquisitions and other growth opportunities. It was interested in information technology services companies, "sustaina...
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