Business Connexion now has a controlling stake in Canoa

Business Connexion has invested into the general print space with the acquisition of a controlling stake in Canoa.

June 9, 2011

Business Connexion has invested into the general print space to enhance the Group’s ability to provide differentiated and effective supply and skill in Managed Print Services. This finalises the Managed Print Services business unit joint venture with Canoa Group that was introduced in 2010.

This investment by Business Connexion of a 50% plus one share of the Canoa Group represents the conclusion of the financial terms and structure of this partnership. The Canoa Group has exclusive distribution rights for Canon copy, print and imaging solutions in South Africa and multi brand break and fix service companies offering cost effective print solutions with a presence in all the major cities of the country. It also owns Katlego Solutions, a provider of print solutions to the public sector, and a specialist provider of printing and imaging consumables. With this investment, Business Connexion has a controlling stake in all these entities.

According to Benjamin Mophatlane, Business Connexion CEO, Managed Print Services is considered an important and growing area within ICT workspace management and managed services. “Printed paper remains an essential component of almost all business processes. But the bottom line is that too many companies are paying too much in their print environments,” he says.

It is this issue which is addressed by MPS as it takes its place as a component of Business Connexion’s managed services portfolio; a managed print services provider delivers a service in terms of which its clients pay only for the printed documents and not for the equipment itself. Included in such services is cost optimisation, maintenance of the equipment fleet and optimisation of the environment throughout the contract life. Simply put, Business Connexion MPS aims to deliver convenient, low-cost and reliable printing.

“The management of multipurpose, intelligent print devices and their related peripherals is a fundamental component of enterprise end-user computing strategies. Combining our reach and client-base with the specific expertise and infrastructure which Canoa has in the print environment effectively creates a complete delivery, support and maintenance structure for enterprise-scale managed print services,” Mophatlane adds.

While Canoa is a Canon importer, Mophatlane stresses that Business Connexion MPS will nevertheless remain vendor-agnostic, providing solutions from a range of manufacturers to meet the needs of its many clients across southern Africa and beyond. Furthermore, existing channel structures remain in place with several solution providers acting as authorised Canon partners, maintaining healthy competition within the marketplace.

With the conclusion of this investment, Mophatlane says a positive impact on Business Connexion’s key target metrics including return on equity, earnings per share and operating profit percentage is expected. Finalised on 01 June, this investment will further enhance Business Connexion’s position in this growing market in 2011.

“Our ‘Connective Intelligence’ vision is firmly centred on delivering a complete set of managed services which meets the need our clients have for efficient, low cost and high quality ICT. This acquisition represents another major step forward in making that vision a reality,” Mophatlane concludes.

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