Altron’s takeover of Ubusha gets approval from competition body

Altron has been given the green light by the Competition Commission for its acquisition of identity authentication company Ubusha Technologies for R360m, the company said on Wednesday.

The deal, announced in early December, is one of the first major local acquisitions under Altron’s new leadership team and is set to increase its focus on security and broaden its customer base.

The listed technology group, known for its managed services business, Bytes People Solutions and vehicle tracking unit Netstar, has said identity security is an essential foundation for customers’ digital transformation strategies and governance structures.

The group said security is one of its growth areas and the acquisition “will give impetus to the company’s strategy and growth targets”.

The transaction, which was set to be effective from March 1 pending approval by the Competition Commission, will see Ubusha merge with Altron’s existing Cybertech business to form a stand-alone operating company, Altron Security Solutions.

Ubusha, founded in 2003, provides advanced technologies for online identification and authorisation, among other things.

Altron CEO Mteto Nyati said in a statement: “This acquisition was the springboard for the creation of a new division, Altron Security, which will allow us to begin to offer solutions in identity management. Identity security is increasingly important for individuals and businesses alike, and this unique identity management technology will help our customers manage personal data profiles securely, in line with data privacy compliance and governance laws around the world.”

With a 70-strong workforce, Ubusha is said to be the largest identity security company in Africa. Its key customers include Standard Bank, Nedbank, Absa Bank, First National Bank, JSE, Vodacom, Telkom and Massmart. Internationally, its key clients are Nasdaq, Vitality UK, Investec and Vodafone.

At the time of acquisition, Ubusha was reported to have revenues of about R170m, with earnings before interest, tax, depreciation and amortisation (ebitda) of R40m. The market in which it is competing is expected to grow to about $2.1bn, at an annual rate of 21%. 

gavazam@businesslive.co.za