The R54 million (US$8.7 million) deal is a significant milestone in Faritec's growth, and is in line with its strategy to diversify and expand its solutions portfolio.

The integration of the two companies, expected to be completed in June, will almost double Faritec's size and create one of the largest black-empowered technology solutions providers on the JSE.

Earnings per share are estimated at 7.4c and annual revenue at above R750 million to 30 June 2005. The combined entity will have a skilled staff complement of more than 400.

Enterprise Connection -- formerly the corporate arm of the retail-focused Connection Group -- is a company with R300 million turnover that specializes in technology solutions and services for SMEs and the public sector.

It also has solid partnerships with HP for infrastructure, Microsoft, Citrix and Symantec for software, and Hansen and AXSone for other technology offerings. "The rationale for the deal was simple," explains Simon Tomlinson, the CEO of Faritec.