Private office automation player Itec has officially announced a multimillion-rand broad-based black economic empowerment (BEE) deal with Cape Town-based non-profit organisation (NPO) Ikamva Labantu.

On the eve of announcing the deal to the broader public, Itec CEO said Ikamva Labantu was chosen as a BEE partner because Itec wanted to broaden the scope of its BEE activities.

Ikamva Labantu is one of the country`s largest NPOs and has been in existence for 30 years.

Under the BEE deal, Ikamva Labantu takes a 50.1% stake in Itec, with the equity transaction being paid off through dividends. The deal is effective from 1 March and, under the new structure, the NPO will have three executives on the six-man Itec board.

Tags: Business  BEE