Listed Allied Electronics Corporation (Altron) has acquired identity security company Ubusha Technologies for R360 million in a move that will enhance its existing capability in the IT security market.

Altron said Ubusha was founded in 2003 and is the largest identity security provider in Africa and provides its clients with identity security solutions for their workforce, suppliers and customers.

“Ubusha combines best of breed software from global industry leaders, together with its core intellectual property and professional and managed services, to provide identity-based security solutions,” the group said.

However, the group said the transaction was subject to regulatory conditions, which include the Competition Commission approval and the passing of resolutions by the respective board of directors of each of the sellers and the purchaser.

Altron chief executive Mteto Nyati said Ubusha would enhance the group’s capability in security, a growth area, others being cloud, internet of things (IoT) and data analytics.

“With identity security offering we will enable customers to securely manage the identity profile of their clients across devices, platforms and locations. Looking at where we are today, transactions have moved online, and the identity profile of an individual has become valuable driven by privacy concerns. Our customers will now manage identity securely in line with data privacy compliance and governance,” Nyati said.

Altron is already a significant player in IT security and together with Ubusha it will also be the industry leader in identity security in Africa, an increasingly critical component of the security market.

“Through Ubusha, Altron will strengthen its capabilities and will now be able to offer customers a securely managed identity profile for their clients across devices, platforms and locations.

Altron has the geographic footprint, extensive customer base and complementary security offerings to continue the growth trajectory of Ubusha into new markets and customer segments,” the group said.

Altron said Ubusha would materially enhance its security capabilities, accelerate its market positioning and provide a strong and strategic platform for the creation of a stand-alone security business.

Ubusha managing director Marius Agenbag said Altron’s geographic footprint and extensive customer-base, would give the group an opportunity to expand its identity security technology solutions into new markets and customer segments.

“We also looked at the opportunity to mature our offering into other next generation security services such as data analytics and IoT which are core to the Altron strategy. We are looking forward to being part of the Altron Group,” Agenbag said.

Altron shares declined 2.37 percent on the JSE on Monday to close at R23.05.

Source: IOL