Musson acquires Massy Tech
Published:Wednesday | October 7, 2020 | 12:13 AM
Musson Jamaica Limited has taken over the technology arm of Massy Holdings Limited through a newly formed subsidiary.
The terms of the acquisition of Massy Technologies from its Trinidadian parent were not disclosed. Based on a review of Massy Holdings’ financial disclosures, the tech business’ net assets were estimated at US$60 million.
“I am not at liberty to make any disclosures about the purchase price,” said chief investment officer for Musson Group, Nicholas Scott.
Musson completed the acquisition through its newly formed subsidiary PBS Technology Group, a distinct entity from Musson’s other information technology subsidiary Productive Business Solutions Limited, PBS, which will be managed by Massy Tech’s executive team, led by its CEO, Ian John.
However, PBS Technology will eventually be placed under the umbrella of Productive Business Solutions, a publicly listed company that trades on the Jamaica and Barbados stock exchanges.
“Following a transition period and requisite approvals, Musson intends to combine PBS Technology Group and Productive Business Solutions to create the foremost information technology solutions provider across both the Caribbean and Central America,” the conglomerate said in a statement.
The combined businesses will have over 2,100 information technology professionals operational in 19 countries, and US$250 million of annual revenue.
The publicly traded Massy Holdings and privately held Musson Group are powerful conglomerates operational in multiple markets throughout the region. Their tech operations Massy Technologies and Productive Business Solutions are both among the largest and most prominent information technology and communications providers in the Caribbean.
Massy Technologies operates in five countries, spanning its home market of Trinidad & Tobago, Jamaica, Barbados, Guyana and Antigua & Barbuda. Productive Business Solutions operates in 16 countries across Central America and the Caribbean.
The combination of the businesses will create an “unrivalled platform” in Central America and the Caribbean, Chairman and CEO of Musson Group Paul Scott asserted in the release.
Massy Technologies earned annual revenue of US$76 million last year, 58 per cent of which was generated in Trinidad. Jamaica was its next largest market, accounting for 21 per cent of revenue, followed by Barbados 12 per cent, Guyana 7 per cent, and Antigua 2 per cent.
The business made a profit of US$15 million at year ending September 2019, up from US$12.5 million, primarily from a one-off gain on the sale of a small entity in the unit, according to Massy’s annual report.
At US$180 million, Productive Business Solutions currently earns more than two times the annual revenue generated by Massy Tech.
PBS’s net assets was estimated at US$33 million in the quarter ending June.