EXCLUSIVE: Mustek’s Shocking Move to Snatch Up Cybersecurity Firm CyberAntix for $2.4 Million in a Desperate Bid to Diversify its Revenue Streams
In a move that has left the industry reeling, JSE-listed technology firm Mustek has embarked on a high-stakes gamble by acquiring 70% of cybersecurity firm CyberAntix from Ayo Technology Solutions subsidiary Sizwe IT Group for a whopping R20 million.
The astounding deal sees Mustek shell out R8 million in cash and take on a R12 million loan between Sizwe and CyberAntix, an unprecedented move that has sent shockwaves through the tech community.
According to CyberAntix GM Morne Terblanche, the deal is a masterstroke that will not only diversify Mustek’s revenue streams but also grant CyberAntix access to new markets and growth opportunities.
Terblanche revealed that CyberAntix’s reseller strategy "fits seamlessly" with Mustek, which has a strong sales team and existing client base, allowing CyberAntix to focus on its core operations while Mustek takes its products and services to the market.
The move comes as Mustek grapples with a severe revenue slump, citing a 16% decline in revenue to R8.5 billion in its latest results. The firm’s inability to grow its IT business has been attributed to spending cuts by clients due to high inflation and interest rates, as well as uncertainty surrounding the national general election in May.
By acquiring CyberAntix, Mustek hopes to leverage the cybersecurity firm’s expertise to expand its cloud services and transition from a hardware-focused company to a services-oriented business. The acquisition also presents an opportunity for Mustek to differentiate itself from competitors by expanding its product offering and providing a "value-add" to its customer base.
However, the deal is not without its risks, and some have questioned the wisdom of Mustek’s move, citing the high stakes and potential for expensive management changes.
Stay tuned for more updates on this developing story as it unfolds!
