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Acquisition announcment
Pinnacle Technology Holdings Limited
Registration number 1986/000334/06
Share Code: PNC
ISIN: ZAE000022570
(“Pinnacle” or the “Group”)
ACQUISITION ANNOUNCEMENT
Pinnacle is excited to announce its acquisition of PrecisionICT (Pty) Ltd
(“Precision ICT”) and Modrac (Pty) Ltd (“Modrac”) with effect from 1 June 2013,
subject inter alia to the completion of a due diligence review.
Precision ICT is an engineering company focused on the design, manufacture and
assembly of quality electronic enclosures and server racking for the ICT and
other specialist markets. Precision ICT manufactures the popular Modrac™ and
Envirorac™ ranges of products. With a proven market reputation, Precision ICT
is the single largest manufacturer of electronic enclosures in Africa and
exports products to the United Kingdom, Middle East, Europe and Africa. Both
companies operate out of a state of the art 10 000m2 factory in Wynberg,
Sandton.
The acquisition keeps Pinnacle at the forefront of the data centre management
market. Arnold Fourie, Chief Executive Officer of Pinnacle, said that the rapid
global increase in cloud computing means that data centres need to expand to
keep up, especially as more and more companies turn to cloud computing
solutions. “Data centres are at the very epicentre of the Cloud,” he said.
“More and more data centres need to be developed to keep up with the increase
in data availability and management. The acquisition of Precision ICT and
Modrac allows Pinnacle to participate in this critically important market
development.”
Fourie said that the incorporation of Precision ICT’s productive capacity into
the Group will add considerably to the existing capacity of the earlier
acquisition of JAG Manufacturing (SA) (Pty) Ltd, and will see the return of the
Modrac™ and Envirorac™ ranges of racking products into the portfolio of
products marketed by the Group. “We are confident that this will allow Pinnacle
to become a major player in the manufacturing and distribution of electronic
enclosures and server room racking products in the country and across the
continent as a whole,” he said. He added that the exciting potential of this
acquisition is expected to contribute to the Group’s growth imperatives. This
forward-looking statement has not been reviewed or reported on by the
Pinnacle’s auditors.
The value of the acquisition is below the minimum threshold for category 2
transactions specified in paragraph 9.5 of the JSE Listings Requirements and
the transaction was not concluded with any related parties.
Midrand
20 May 2013
Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd
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