Allied Electronics Corporation (Altron) announced a new corporate structure which follows the approval of the initiative to buyout minorities in its subsidiary Altech.
The technology group said on Friday a new division called Altron TMT (Telecommunications, Multi-media and Information Technology) will be created. The new division will house 100% of Altech and 100% Bytes Technology Group. However the announcement said these two businesses will continue to exist as separate entities maintaining their well established brand identities.
The group said the Altron TMT division will be led by Craig Venter who has been appointed to the position of Altron Group Executive: TMT with strategic and operating responsibility for maximising the synergies between the Altech and Bytes businesses. Craig will continue to fulfill his existing role as Altech CEO. Rob Abraham, currently CEO of Bytes, will remain in that position reporting to Craig Venter. Rob will remain a member of the Altron Executive Committee and the Altron Board. Peter Riskowitz, current CFO of Bytes, will assume the role of Altron TMT: CFO reporting to Craig Venter.
Robert Venter, Chief Executive at Altron said “As a result of increasing convergence between the IT and Telecommunications sectors we were starting to see many opportunities for Altech and Bytes to work closer together. Following the acquisition of Altech by Altron, it is now possible for us to maximise synergies and eliminate overlap between the Altech and Bytes groups by bringing them together in the Altron TMT division.
He added that it has become necessary to streamline the operations and put forward the best possible combination of products and services to our clients. “We see opportunities for both revenue enhancement as well as cost efficiencies in the new structure. This will include the combination of the head offices of Bytes and Altech in the recently established Altech head office in Woodmead. This will further enhance the collaboration between the businesses.”
“We have a good balance of Altech and Bytes people with decades of industry experience occupying senior management positions in the proposed new Altron TMT division. This will assist with the integration of the businesses through alignment of assets, the removal of duplicated costs through a shared service model and a more focused approach to customers thereby providing both cross and up selling opportunities,” said Robert Venter.
Craig Venter said there are compelling reasons for Altech and Bytes joining forces. “Bringing Altech and Bytes together will create the largest converged solutions group on the African continent. In addition, the companies are both leading players in the markets in which they operate. Altech has a tremendous telecommunications and IT heritage and has leading market share in the markets in which it operates. Bytes has equally strong IT capabilities and putting these two groups together creates a formidable organisation, with incredible resource and potential in the TMT environment”.
In addition to the Altron TMT appointments, Dr. Willie Oosthuysen, previously Chief Technology and Chief Strategic Officer at Altech has been appointed as Altron Group Executive: Technology and Strategy reporting to Robert Venter and joining the Altron Executive Committee.
“As Altron starts its transformation from a pure investment holding company to a strategic operating company Willie will play a vital role in guiding and coordinating the operations towards, not only greater efficiency, but also a united go-to-market offering to our customers. Going forward our clients will be central to the way we structure our business and package our products and services,” concluded Robert Venter.