Alviva Holdings acquired technology distributor Tarsus
Alviva Holdings entered into an agreement with Mamzen to purchase Tarus for R183,4 million.
On 12 November 2020, JSE-listed ICT and communication technology products and services provider Alviva Holdings entered into an agreement with Mamzen to purchase technology distributor, Tarsus, for R185,4 million.
Tarsus handles and distributes some of the world’s leading IT brands to the southern African market. The group has expanded into multiple regions across sub-Saharan Africa and offers its customers branded products within the wider technology distribution ecosystem, supported by professional solutions in supply chain optimisation, cloud, and security.
The Tarsus Group’s operating subsidiaries are Tarsus Distribution, the company that owns the South African, Botswana and Namibian IT distribution operations, and Tarsus on Demand, a company that operates a cloud solutions business.
Excluded from the transaction is the GAAP Point-of-Sale software business, which will be distributed, prior to Alviva’s acquisition, to the current shareholders.
Alviva said the audited profit after tax attributable to the net assets of Tarsus that is the subject of the acquisition for the year ended February 2020 was R34,8 million.
In September, Alviva reported a 50 percent drop in headline earnings for the year ended June 2020, and while it indicated that its results were disappointing, it managed to navigate the challenges presented by the economic fallout of the Covid-19 pandemic and national lockdown, as well as load shedding during the period.
Alviva said that the acquisition of Tarsus was pursued primarily for the expansion of the current IT distribution businesses into the retail customer segment where it has limited exposure, expansion of the product baskets by adding new vendors, and for further growth into Africa.
Tarsus’ cloud business is significantly larger than that of Alviva and its African business exceeds R670 million in revenue.