Gijima acquires T-Systems South Africa following successful turnaround strategy

 

IT solutions provider Gijima has acquired the business of T-Systems South Africa (TSSA) for an undisclosed fee.

TSSA, owned by T-Systems International, the IT services arm of German-based Deutsche Telekom, is a provider of ICT networks, applications and systems to South African companies.

“This transaction is the result of T-Systems Internationals strategic review of its global portfolio and its decision to refocus on its core markets in Europe and the Americas,” a statement from Gijima said.

“The transaction will enable Gijima to have access to international IP, expertise and best practices whilst ensuring Gijima’s current and new acquired clients receive top drawer innovation, best in class service delivery, business efficiencies, security know-how, and lastly securing numerous jobs from the impact of Covid-19.”

The group said that the acquisition of TSSA comes after a successful turnaround strategy for Gijima.

Group chief executive, Maphum Nxumalo said: We are proud of the growth of our business. The transaction is in line with our strategy of servicing our customers in the new digital era. Our main focus remains the organic growth of Gijima, through working closely with our existing clients by continuously being innovative and increasing efficiencies.”

He said that the company remains open and keen to make further strategic acquisitions that will enhance its value proposition.

Gijima, he said, will now own a Tier 3-level Data Centre which provides it with improved quality infrastructure to create other economic opportunities and expand its portfolio of services to new markets and clients such as retail, manufacturing, private healthcare and automotive.

“Gijima is a good fit as a new local owner of the TSSA business. This transaction will see two Level 1 BEE leaders, with long ICT heritage in South Africa, coming together for the mutual benefit of customers,” said T-Systems South Africa MD, Dr Rajan Padayachee.

“Gijima and T-Systems have a successful track record of seamlessly transitioning clients and staff members,” the statement said.

Upon the acquisition approval from the Competition Commission and in accordance with applicable legislation, highly skilled staff members from T-Systems will join the 2,600 existing Gijima employees.

The transaction is pending Competition Commission approval.

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