Annual report 2010

Corporate Responsibility 2010

Vision 2012

History

1965

		Allied Electric was founded by Bill Venter, a 33-year old telecoms engineer, and three colleagues. Total staff complement was six people. Founder and chairman of Altron, Dr Bill Venter (left).

Allied Electric begins business as a designer and manufacturer of semi-conductor rectifier equipment, battery chargers, inverters, variable speed drives, DC motor controls, DC power supplies, electronic signal equipment and transformers. Components are distributed on behalf of leading French, USA and UK principals and manufacturers.

1974 - 1979

After rapid expansion by Allied Electric, one of South Africa’s leading telecommunications manufacturers, STC (UK), is acquired from ITT Corporation (USA), and subsequently Altech (in 1974) becomes the holding company of the group.

		In 1974, Allied Technologies (Altech) is listed on the Johannesburg Stock Exchange.

1979 - 1980

A new holding company, Allied Electronics Corporation (Altron), is created and positions Altech under it as its telecommunications subsidiary and Powertech as the power electronics subsidiary

Altron has approximately 3 700 employees and annual revenue of R89 million.

Powertech acquires the Willard Battery Group from the ESB Group (USA) making Powertech South Africa’s largest auto motive/industrial battery manufacturer.

Powertech acquires the Willard Battery Group from the ESB Group (USA) making Powertech South Africa’s largest auto motive/industrial battery manufacturer. Powertech acquires Litemaster, South Africa’s largest manufacturer of electrical accessories as well as Crabtree Electric from the Crabtree Group (UK).

1981 - 1985

The Board creates a holding company to control the Altron, Altech, Powertech and Fintech companies, calling it Ventron Corporation.

In 1982 Altron, through Powertech, acquires 90% of Lascon Lighting Industries.

In 1983 Powertech acquires former Swedish-owned ASEA Electric which consists of a transformer and cables division.

Altech assumes sponsorship of the South African Open Tennis Tournament.

In late 1984 Powertech acquires Scottish Cables from BICC.

		In 1985 Powertech buys a controlling interest in Aberdare Cables and then merges Scottish Cables and ASEA W/Aberdare to form South Africa’s largest cable company trading under the Aberdare brand. In 1983 Africa’s largest corporation, Anglo American Corporation, purchases a 20% shareholding in the Ventron Group.

In 1985 Altron’s revenues reach R320 million with a market capitalisation of R358 million.

1986 - 1990

The JSE-listed Autopage Holdings is purchased and significant growth is recorded in all the group’s acquisitions.

The group’s thrust into information technology is spearheaded by the listing of Fintech in 1986.

The group comprises holding company Ventron, with five listed subsidiaries, Altron, Altech, Fintech, Powertech and Autopage Holdings, each operating in a well- defined field of technology.

In 1987, Fintech acquires Rank Xerox South Africa and Altech acquires UEC Projects. In the same year Powertech acquires the remaining shareholding in ASEA Sweden and Stromberg South Africa from Stromberg in Finland. In 1989 Fintech acquires a majority shareholding in NCR Corporation of South Africa.

1991 - 1994

Aberdare Cables plays a key role in the electrification of South Africa through innovative product design for Eskom.

A 50% joint venture is formed with Alcatel France in STC, Altech’s telecommunications subsidiary.

In 1994 Altron has 14 400 employees, a market capitali- sation of R1.3 billion and its annual revenues exceed R3.2 billion.

Xerox USA re-enters South Africa in a joint venture with Altron.

Aberdare Cables acquires Delta Cables thereby further consolidating South Africa’s cable market and enters European markets by acquiring Alcobre in Portugal.

1995 - 1996

Powertech disposes of its Gentech household appliance business to Whirlpool (USA).

Altron’s listed subsidiary Autopage, residing under Altech, secures a licence to act as a GSM cellular service provider to both network operators, MTN and Vodacom.

Altron receives the prestigious President’s Export Award as the nation’s foremost technology exporter from President Nelson Mandela.

In 1995 The Bill Venter Foundation completes the rebuilding of the Qunu and Nkalane Secondary Schools in Umtata, the alma mater of the former Presiden of South Africa, Nelson Mandela.

1997 - 1998

Altron exports reach R500 million with a remarkable overall 53% increase in exports in rand value terms.

Acquisition of Lambda Cables.

ABB Powertech is restructured to form ABB Powertech Transformers and ABB Powertech Transmission and Distribution.

Netstar, South Africa’s leading vehicle tracking company, is acquired.

Powertech acquires Sabat Batteries.

Powertech acquires the cable manufacturing interests, as well as a 25% stake in the distribution business of Voltex Holdings Limited for R750 million.

Powertech’s Aberdare Cables is ranked as one of the world’s top 25 cable manufacturers.

ABB Powertech Transformers secures substantial orders for the supply of transformers for two power plants in Mexico and further power plants in the USA.

1999 - 2000

Autopage Holdings is delisted and Ventron is unbundled.

Altron’s shareholding in Telemetrix is sold as the group focuses on core assets.

Powertech acquires Battery Technologies.

Black Economic Empowerment company, Kwezi Investments Limited, acquires 10% of Aberdare Cables.

Powertech is rated by Forbes magazine as one of the top 300 smaller companies in the world.

UEC Technologies develops world-leading digital decoder technology which becomes a household name in SA, Italy, Holland, Cyprus, Greece and the Gulf States.

Altech enters the smart card field through Altech Smart Card Technologies.

The group increases its stake to over 50% in subsidiary, USKO through a R228.4 million rights issue.

Altech, through Alcatel Altech Telecoms, secures the largest ever (R1.2 billion) telecom munications contract placed by Telkom for DECT (digital enhanced cordless telephony) systems.

2000 - 2001

With 12 625 employees, Altron revenues in 2000 exceed R7 billion and market capitalisation reaches R1.9 billion.

Powertech acquires Cables de Comunicaciones SL, a leading Spanish telecom- munications cable manufacturer.

Two leading healthcare IT companies, PQ Africa’s QEDI and Bytes’ MediSwitch in the medical claims forwarding industry, merge to form an internet healthcare and e-commerce partnership in the form of Digital Healthcare Solutions.

		USKO is re-branded as Bytes Technology Group Limited (Bytes) and the IT interests of Fintech are purchased by BTG to consolidate the group’s IT under Bytes.


The Altron Chairman and Chief Executive Officer positions (both previously held by Dr Venter) are split. Robert Venter is appointed Chief Executive of Altron, with Dr Venter retaining the Chairmanship of the group.

The Altron Executive Committee is formed with key strategy to simplify group structure, divest non-core operations and focus on core business implemented.

2002

2002 marks the group’s 37th year of growth with revenues of R10 billion and a market capitalisation of R2.2 billion.

Xerox SA secures the exclusive sub saharan distributorship for Xerox products.

		Altech sells its 40% stake in Alcatel Altech Telecoms for R335 million.

Powertech and Fintech are delisted and become wholly-owned subsidiaries of Altron.

Altech is ranked as one of the TOP 20 Companies listed on the JSE Securities Exchange by Financial Mail.

Altron’s 2001 export sales top R1 billion mark.

Aberdare Cables, a subsidiary of Powertech, enters into an equity partnership with Corning International Corporation, a world leader in optical fibre technology.

Another rural school, built by The Bill Venter Foundation, is officially dedicated by former President Nelson Mandela at a ceremony in Elliotdale, in the Eastern Cape.

Powertech’s shareholding of 30% in Voltex distribution is sold for R130 million to Bidvest.

2002 - 2003

Altech Card Solutions (ACS) acquires Cardtronics.

Altech’s Netstar expands into Malaysia.

Altron is nominated as one of the Top Ten Companies for 2001/2 with revenues rising by 15% to R11.4 billion and operating income by 20% to R912 million.

Altech is judged top ICT company in South Africa. Fintech launches the first office equipment securitisation in SA. Alcom Systems sells 30% of its stake to Motoma ICT Group in a BEE deal.

2004

Altech repurchases R250 million of its shares in the open market.

Altech and the Econet Wireless Group announce a R1 billion joint venture.

		Altech acquires NamITech, a manufacturer of smartcards, pre-paid vouchers and a mobile solutions provider and introduces Pamodzi as BEE shareholder in Altech Data and NamITech.

Bytes sells 27% of its Bytes South African operations to Kagiso in a BEE deal.

Aberdare Cables sells 30% to BEE company, Izingwe Capital, founded by Sipho Pityana.

Bytes purchases CS Holdings as well as 50% of Xerox SA from Xerox International to move to 100% ownership and re-brands Xerox SA as Bytes Document Solutions.

Altech sponsors inaugural F1X2 international motor racing event.

2005

Altron’s 11 800 employees celebrate its 40th anniversary with an increase in revenues of 22% to R12.2 billion and operating income of 35% to R968 million. Market capitalisation reaches R5 billion.

Altech exits joint venture with Econet with a R150 million profit.

Powertech purchases Calidus, a manufacturer and supplier of electrical insulation materials and signs a new 10-year agreement with Von Roll Isola.

Altron launches its Transformation Vision 2010, an internal Black Economic Empowerment (BEE) policy document which includes a group scorecard for Black Economic Empowerment.

Vodacom and MTN sign long- term agreements with Altech for Altech Autopage Cellular to act as an independent service provider for a minimum of five years

CS Holdings is successfully integrated into Bytes.

2006

Altron increases shareholding in Bytes to 57.7% by purchasing R100 million of shares on the open market.

Revenues exceed R14 billion and operating profit exceeds R1 billion for the first time.

Market capitalisation increases to R8 billion. Bytes purchase UK – Vantage and Xclusive (Xerox concessionaires). Altech purchases French-based MobiMaster.

2007

Market capitalisation exceeds R13 billion for the first time.

Acquisition of Swanib Cables.

Acquisition of IST, subject to regulatory approval.

Acquisition of Revenues exceed R17 billion.

Empowerment deals at Altech Netstar Fleet Management and Altech Matomo announced.

2008


»	The acquisition by Powertech of the electrical engineering operations of the IST group for R504 million.

»	The acquisition by Altron of the minority shareholders in Bytes Technology Group Limited for R1.4 billion. Bytes was de-listed from the JSE Limited.

»	The acquisition by Altech of ComTech for R53 million.

»	The purchase by Altron of an additional 3.7% of Altech for R187 million at an average price of R52.14 per share during February 2008, thereby increasing its stake in Altech to 62%.

»	The acquisition by Powertech of the 25% minority in Cables de Comunicaciones Zaragoza, for €8 million.

»	The acquisition by Powertech of Swanib Cables for R43 million.

»	The acquisition by Altech of 51% of the Sameeer ICT group in Kenya for maximum consideration of US$75 million.

»	The acquisition by Powertech of the 50% stake it did not own in ABB Powertech Transformers from ABB for R320 million.

»	The disposal by Powertech of Yelland Control to Omron Europe for R65 million.

»	The acquisition by Bytes of Intelleca.

»	The acquisition by Bytes of Nor Paper.

»	Altech Autopage Cellular and Neotel sign distribution agreement.

»	The Pretoria High Court rules in favour of Altech Autopage Cellular to the entitlement of an individual electronic communications network service (I-ECNS) license, enabling the group’s telecommunications subsidiary to develop and operate its own telecommunications network.




	2009

»	Bytes Document Solutions announced “Partner of the Year” and wins “Productivity Through Partnerships” award at the XEROX Middle East and Africa Operations Conference held in Dubai.

»	Altech awarded landmark electronic communications network service (I-ECNS) and electronic communications service (I-ECS) licences

»	Bill Venter recognised as SA’s Mr Technology by government and industry for his significant contribution to technology over the past 45 years.

»	Altech acquires Technology Concepts an internet service provider (ISP) and information technology company.

»	Bytes Document Solutions upgrades its support structure and presence in Zimbabwe by appointing Document Support Centre as its exclusive distributor in our neighboring country. - June 09

»	Intelleca named Genesys partner of the year.

»	Bytes Outsource Services has clinched a three-year R100 million contract to manage and operate Neotel’s customer care contact centre.

»	Dr Bill Venter, founder and Chairman, celebrates his 75th birthday and launches his autobiography, In pursuit of a dream “Bill Venter and the Altron story”.

»	Altech’s KDN acquires 8.5% stake in The East Africa Marine System Limited (TEAMS): for an amount of USD 11 million.

»	Altech’s Kenya Data Networks lays 1500kms of fibre between Mombasa and Kampala.

»	Dr Bill Venter receives the “Legend in ICT Award” which was presented by the State Information Technology Agency (SITA) during the GovTech 2009 Conference.

»	Altech and Seacom announce strategic bandwidth alliance.

»	Bytes Systems Integration awarded the 2009 South African Manufacturing Execution Systems (MES) Competitive Strategy award by Frost & Sullivan, an international consulting and research company.

»	Powertech Transformers expands BEE shareholding and restructures transformer business: Power Matla, chaired by Solly Moloko, takes a 20% equity in the combined Powertech Transformers and Desta Power Matla operations.

»	The Altech Academy becomes the first corporate university in the local ICT industry to have its higher education training programmes accredited by the Information Systems Electronics and Telecommunications Technologies (ISETT) Seta and Department of Labour.

»	Altech in one of South Africa’s Top 500 companies.

»	Altron ranked the 17th best company in South Africa regarding its carbon footprinting initiative and reporting

»	Altech announces 25% Black Economic Empowerment deal: Altech announced a 25% + 1 share Black Economic Empowerment (BEE) transaction in relation to three of its subsidiaries, Altech Netstar, Comtech and Altech Netstar Fleet Solutions.

»	Altech announces 25% Black Economic Empowerment deal: Altech announced a 25% + 1 share Black Economic Empowerment (BEE) transaction in relation to three of its subsidiaries, Altech Netstar, Comtech and Altech Netstar Fleet Solutions.

Page updated: 12 March 2009

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