Ansys makes R40m offer to buy Profitek

ANSYS has made an offer to the shareholders of Profitek Industrial Communications to acquire 100 percent of the issued share capital for a cash consideration of R40 million.

Ansys will pay 30 percent of the amount, which is equivalent to R12m, upfront in cash. The remaining 70 percent will be settled by issuing Ansys ordinary shares.

The group said the shares would be issued at a price equal to the 30-day volume weighted average price of the Ansys shares at the effective date.

“The transaction gives Ansys the opportunity to create a leading empowered South African engineering company with a particular focus and strength in the mining sector,” the group said.

The acquisition is in line with Ansys’ corporate strategy and it will also enhance safety and productivity business division in the company’s pursuit to become a digital technology solutions provider.

In order for the acquisition to take place, it must first pass certain conditions.

Ansys wants a completion of detailed financial, tax and legal due diligence and if deemed necessary a human resources, information technology or commercial due diligence to the satisfaction of Ansys.

The acquisition must also be approved by both boards of Ansys and Profitek.

“All such other statutory and regulatory approvals and requirements are complied with and obtained from the JSE, the takeover regulation panel and the competition authorities,” the group said.

The group said the net value of the assets attributable to Profitek was about R12.9m as at the end of February while earnings attributable to the net assets were R4.2m for the year.

Ansys is a holding company listed on the JSE’s alternative exchange.

It consists of a portfolio of technology businesses operating in the rail, mining and industrial, defence and information security and telecommunications market sectors, both locally and internationally.

The acquisition news failed to lift the share price as the company’s traded more than 3percent lower for the better part of Friday. It eventually closed 6.45 percent lower at R1.16.In the recent results for the year to March, the group delivered 70 percent increase in revenue to R806m, from R474m.

Operating profit increased by 212.4 percent to R100.2m, up from R32.1m, while headline earnings more than doubled to R67.8m, increasing by 239.7 percent.

Headline earnings per share increased by 202.7 percent from 4.86 cents a share to 14.71c. “This growth is predominantly a result of our strategy of strengthening the verticals in terms of market access and delivery capability, both organically and through historical acquisitions,” the group said.