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MICROMEGA HOLDINGS LIMITED - Acquisition of Rdata

Release Date: 27/10/2014 16:10
Code(s): MMG     PDF:  
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Acquisition of Rdata

MICROmega Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1998/003821/06)
Share code: MMG ISIN: ZAE000034435
(“MICROmega”)


ACQUISITION OF RDATA


1. INTRODUCTION

The board of directors of MICROmega (“the Board”) is pleased to announce that MICROmega has acquired
the total issued share capital in Rdata Proprietary Limited (“Rdata”), a provider of enterprise management
systems (“EMS”) to Local Government in South Africa (“the Acquisition”).

2. RATIONALE FOR THE ACQUISITION

Rdata is an important addition to the product and service offerings of Sebata, a wholly-owned subsidiary of
MICROmega. Sebata is an integrated technology professional services provider that has its principal focus
on municipalities, public entities and government. In particular, Sebata’s EMS is steadily increasing its
penetration into the Local Government sector with 41 local authorities currently using the Sebata system.
Rdata now adds a further 16 Local Authorities, predominantly in the Western Cape. Rdata also provides
systems solutions to 30 municipalities in Zimbabwe and to a relatively minor extent in Swaziland and
Zambia. Sebata sees a clear opportunity to leverage its products and services into those and other African
countries.

National Treasury has commissioned a critically important project (“SCOA”) for the implementation of
standardised business processes, financial management, and the reporting thereof across all 278 Local
Authorities in South Africa. Sebata is actively engaged with National Treasury in the implementation of
SCOA and has made a significant investment in its technology to ensure that National Treasury’s
requirements are fully met by the much enhanced Sebata EMS. The Acquisition now places Sebata as the
second largest, by number of Local Authorities, provider of EMS solutions to Local Government in South
Africa.

Sebata’s expansion will also assist other MICROmega group companies by providing strong cross-selling
opportunities for their value added service offerings, such as their water management solutions.

3. PURCHASE CONSIDERATION

Rdata was acquired for a purchase consideration of R12 570 000.

Settlement took place on 22 October 2014, and was comprised of a cash settlement of R4 784 000 and
458 000 shares in MICROmega that were issued at R17 per share.

4. CLASSIFICATION OF THE ACQUISITION

The Acquisition, due to its size, falls below the transaction thresholds as set out in the Listings Requirements
of the JSE Limited and therefore does not require any formal disclosure. However, the Board would like to
advise shareholders of this important strategic acquisition.

Johannesburg
27 October 2014

Sponsor
Merchantec Capital

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