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Update - Change in Strategic Vendor Partnership Status
ISA Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1998/009608/06)
Share code: ISA ISIN: ZAE000067344
(“ISA” or “the Company”)
UPDATE - CHANGE IN STRATEGIC VENDOR PARTNERSHIP STATUS
Shareholders are referred to the announcement of 28 November 2019, wherein shareholders were
advised that one of ISA’s strategic vendor partners, Check Point Software Technologies Limited ("Check
Point"), had decided to change ISA's partner status to an entry-level reseller.
This demotion, effectively downgrading ISA’s position in Check Point’s reseller program from the highest
tier available (“4-Star Elite Partner”) to the lowest tier available (“Not-In-Program Reseller”) is likely to
have a substantial effect on the business due to the summary reduction in Check Point reseller benefits
associated with this demotion, such as unfavourable reseller discounts, the removal of all cooperative
marketing support and the limited access to Check Point’s advanced technical escalation structures. In
effect, for as long as ISA remains at this entry-level reseller tier, it is unlikely that they will be able to win
major new Check Point based projects, nor retain their existing customers who have a committed
investment in Check Point technologies, which accounted for as much as 90% of ISA’s turnover in the
last financial year ended 28 February 2019.
Despite several discussions being held between the parties since the demotion late last year, it is
unfortunate that no meaningful progress has been made towards mending the relationship between
themselves thus far.
Accordingly, and while ISA continues to search for ways of working with Check Point in a mutually
beneficial manner into the future, the Company will be increasing its focus on its stated plans of
onboarding other emerging ‘next generation’ technologies and brands that are required by their
customers to effectively address the rapidly evolving information security threat landscape.
Johannesburg
16 January 2020
Designated Adviser
Merchantec Capital
Date: 16-01-2020 03:17:00
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