Ashona Kooblall, group CFO of iOCO.
Technology services group iOCO plans to expand its portfolio through acquisitions in artificial intelligence (AI), cyber security, cloud and digital transformation, as it seeks to capitalise on demand for modern technology following a 39% increase in annual profit.
Ashona Kooblall, group CFO of iOCO, told ITWeb yesterday in an interview that the company has established a centralised acquisitions function to identify technology businesses that can strengthen its capabilities and support its ambition to become a leading technology provider in South Africa.
The acquisition drive follows iOCO’s reported profit after tax of R357 million for the year ended 31 July, up 39% from R258 million in the previous financial year. Revenue increased 3% on a constant currency basis to R5.73 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 18% to R610 million.
Towards the end of the financial year, iOCO completed two acquisitions: MySky Group of Companies, which specialises in network and IT infrastructure management, and Astraia Technology, a provider of cloud-based software for finance, procurement and other core business functions.
Kooblall said the group was in a stronger position to pursue acquisitions than it had been three years ago.
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“I’ve been in the business for many years and three years ago I would never have expected iOCO could be in such a healthy position to be able to drive the strategy of being technology champion in South Africa.”
She added that acquisitions would remain a key part of the group's growth strategy.
“You should absolutely expect the same trend,” she said, referring to iOCO’s plans to continue acquiring technology businesses.
The group has established a centralised acquisitions function to assess potential deals and determine how capital should be allocated. Kooblall said the process involves daily reviews of prospective businesses alongside group CEO Rhys Summerton.
The group will prioritise businesses operating in AI, cyber security, cloud and digital transformation, particularly those with skills and capabilities that complement its existing portfolio.
Kooblall said iOCO had the cash resources to pursue suitable acquisitions but would remain selective about the businesses it buys.
Beyond acquisitions, iOCO is investing in workforce development and helping customers prepare for AI adoption.
Kooblall said the group’s workforce of more than 4 000 people needs continuous training as technologies evolve.
During FY2026, employees completed more than 17 000 learning hours focused on AI and digital transformation, she noted.
Kooblall said iOCO is concentrating on assessing customers’ AI readiness rather than rushing into large-scale implementations.
“At this point in time, we're doing a lot of work around AI readiness rather than AI implementation.”
She added that the group wants to help customers prepare for adoption before positioning itself as a technology partner for implementation.
“When the customer is ready and we have our brightest minds out there as evangelists to our customers, we then position ourselves as the preferred partner to drive the AI story.”
The group also supports customers with digital transformation and legacy system modernisation − areas it sees as important to helping organisations adopt newer technologies.
Kooblall said AI is being used across iOCO’s diversified technology portfolio.
iOCO’s international operations recorded revenue growth of 2% during the financial year, despite disruption caused by the conflict in the Middle East.
Kooblall said about 80% of the group's international portfolio operates in the region, with businesses directly affected by the war for five months of the financial year.
“Notwithstanding that, those businesses were highly-resilient and were still able to deliver their targets for the year.”
She added that retaining customers through the disruption has left the international business on a stronger footing as it entered FY2027.
The group’s overall revenue growth was also constrained by softer spending in parts of the technology market.
IT services, its largest segment, increased revenue by 4%. However, its operational technology business, which serves mining and industrial customers, faced slower spending and delayed investment decisions as conditions weakened in those sectors.
Kooblall said the operational technology businesses had diversified into larger African markets, helping to protect their profitability.
iOCO is also developing technology financing as a new revenue stream, aimed at customers that may struggle to fund large infrastructure projects upfront.
Kooblall said the initiative would allow the group to work with funding partners to offer customers rental arrangements, leaseback options and long-term financing solutions.
“A lot of companies don’t have the working capital to put up front to a R300 million infrastructure solution,” she said, explaining the need for alternative funding models.
The offering is intended to help organisations implement technology infrastructure without having to fund the full cost at the outset.
In the public sector, iOCO recently appointed a new head of the business, Ntutule Tshenye, from the State Information Technology Agency, as it seeks to rebuild its position in government technology services.
Kooblall said the appointment has helped reposition the business. “We have been winning new deals and it’s a very exciting time for us to be able to deliver value for public services and actually be a preferred partner as well.”
The group is also continuing its share buyback programme. “We do feel that our shares are currently undervalued and this is, you know, second to acquisitions, the best way to protect value to shareholders,” she added.
The programme was launched late last year and resumed after the company's closed period ended.
Looking ahead, iOCO expects EBITDA of at least R680 million in FY2027, compared with R610 million in FY2026. The group has identified acquisitions, recurring revenue growth and improved cash generation as priorities for the year ahead.