South Africa’s Metrofile buys G4S records unit for Sh2.1bn

G4S data unit has been acquired by South African firm. file PHOTO | NMG 

By BRIAN NGUGI

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Summary

• Metrofile will take over the operations and staff of the Nairobi firm under the deal valued at Sh2.125 billion.
• SDS Kenya operates a records management business specialising in all aspects of corporate archiving and record management, including storage, indexing, retrieval, tracking, archiving and records management digital services.

South African records and information management firm Metrofile has confirmed it has completed the acquisition of G4S Secure Data Solutions Kenya (SDS Kenya), one of the largest records management companies in East Africa.

The company will take over the operations and staff of the Nairobi firm under the deal valued at Sh2.125 billion.

“Metrofile is pleased to announce that all conditions precedent have been met and the acquisition is now unconditional and has been finalised,” the company listed on the Johannesburg Stock Exchange (JSE) said in a notice.

“Metrofile welcomes the management and staff of SDS Kenya to the Metrofile Group.”

The company said capital for the deal had been raised through internal resources and debt facilities, with the company’s board saying it had opted not to raise additional capital by way of a rights issue or placement.

An announcement by JSE last December said the company concluded a share purchase agreement to buy the company from UK-based G4S International Holdings and from Kenya’sNurun Investments.

SDS Kenya operates a records management business specialising in all aspects of corporate archiving and record management, including storage, indexing, retrieval, tracking, archiving and records management digital services.

“The board believes that the Kenyan records management market has significant potential for growth, and that SDS Kenya is a well-established business that will provide an ideal strategic platform to extend Metrofile’s presence in the broader East Africa region,” said Metrofile earlier.

According to Metrofile, the deal is a “strategic move” that will increase its footprint in Africa and provide it with an expanded international client base, strong management team and local expertise in the records management industry.

“The transaction demonstrates Metrofile’s positive intention to continue the rollout of its services into selected African countries through organic as well as acquisitive growth. The transaction is also in line with G4S’ stated intention to dispose of operations not core to its security business,” the company noted.

Metrofile, which offers physical storage and digital services, as well as the confidential destruction and recycling of records, has been growing its presence in the Middle East and other African countries.