Britehouse will soon exit the NTT Data fold, formerly Dimension Data, to become a standalone entity, following a buyout by its management.
For NTT Data, the deal is part of a wider strategy that has seen the group offloading certain noncore operations, with the aim of refining its focus on the parts it seeks to grow into the future.
On Thursday, Britehouse Mobility said it was “embarking on a new era of innovation and independence” following a management buyout transaction, effectively acquiring the business from NTT Data, for an undisclosed amount.
In business, a management buyout is when a company’s existing management team purchases the business they currently run, often using a combination of personal funds, loans and external financing. This allows the managers to gain ownership and control, typically when the current owners want to exit or divest. While management buyouts offer continuity and insider knowledge, they can carry financial risks due to the debt involved.
Established in 2007, the company is primarily a digital transformation and business process automation services provider. It specialises in helping businesses implement and optimise their digital strategies, providing custom platforms, products, consulting services, and enterprise application integration across various industries.
Following the deal, Britehouse Mobility will be known as Britehouse and will operate as a fully independent company.
NTT Data took full control of Britehouse in October 2015 when it acquired a 60% stake in the company. At the time, NTT Data already held a 40% equity stake, meaning it had 100% ownership post the 2015 transaction.
“We are continually refining our portfolio of services to ensure we remain relevant to our clients,” NTT Data CEO Alan Turnley-Jones said.
He said the decision to sell Britehouse Mobility would enable the group “to accelerate our growth ambitions by focusing on our core competencies: technology consulting, data and artificial intelligence, industry-specific solutions and the development, implementation and management of applications, infrastructure and connectivity.”
This latest transaction is seen as a way to fully reinstate the Britehouse brand.
Four years ago, DiData went through a rebranding exercise, retiring brands Britehouse, Internet Solutions and ContinuitySA in a move that resulted in the group operating under one name and reducing duplication among some of its subsidiaries.
“After several successful years operating as part of the global NTT DATA group, Britehouse is excited to return to its roots as an independent, SA-led business,” said Graham Parker, executive chair at Britehouse.
“The future of business requires agility, intelligence and innovation. As an independent entity, we now can be more agile and responsive to our customers’ needs”.
“We look forward to working with, and welcoming, both our existing and new customers. This change gives us the agility to better meet their needs by delivering advanced software engineering, tailored solutions, and AI integration that make measurable impacts,” he said.
Britehouse becomes the latest in a string of management buyouts in SA’s technology sector.
In May, the Altron Nexus unit has rebranded as Sentiv following a buyout by its management from the JSE-listed technology group.
In early 2024, competition authorities approved the management buyout of Dimension Data’s advanced infrastructure business. This was the second such deal for the technology giant after a similar transaction involving an affiliate in Ghana.
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