Johannesburg — CALL centre company Dialogue is paying at least R47,5m to take over Verge, a consultancy specialising in business process outsourcing services.

Verge is owned by director Glenda White and listed technology group Simeka.

Dialogue directors said the move, announced on Friday, was in keeping with its expansion plans and its efforts to push its services further into the public sector. Dialogue and Verge shared common aspects of their business and the acquisition should create new business opportunities and generate cost savings by sharing a common infrastructure, the directors said.

The deal centres on Verge's 50% stake Verge in Sibize International and several outsourcing contracts it holds, but excludes a 50% stake Verge owns in Siyandza Skills Development. Dialogue owns the other 50% of Sibize, and will wholly own that company once it has absorbed Verge.

The deal has been structured so that Dialogue will pay an initial R47,5m for Verge's interest in Sibize in cash and shares. How much extra Dialogue pays for the other outsourcing contracts will be decided after it releases its results to last month and Verge issues its figures for the year to February. That extra payment will be covered by issuing new Dialogue shares and cash.

The move is subject to conditions, including an undertaking that the relationship between Verge and Sibize will not be affected by change in ownership.

Dialogue's shares were trading at 140c on Friday, 1c up from their opening price.