SMD Technologies acquires the Ellies electrical brandÂ
SMD Technologies has acquired the Ellies electrical brand, the company announced on Friday.
The acquisition comes three months after Elliesâ business rescue practitioner, John Evans, announced that the holding company was being liquidated.
Ellies went into voluntary business rescue on 31 January 2024.
âThe business rescue practitioner has concluded that there is no reasonable prospect of the company being rescued,â Ellies said at the time.
Following the announcement, Evans clarified that subsidiary Ellies Electronics continued to trade, and several suitors had already approached them to acquire Elliesâ operating divisions.
It should be noted that SMDâs acquisition is for the Ellies brand and intellectual property, not its operating divisions.
âEllies is a trusted name with consumers, given its long-standing heritage,â said SMD Technologies managing director and co-founder Avi Mishan.
âWe are excited to integrate the Ellies electrical brand into our portfolio and continue providing high-quality products to our customers.â
Founded in 2005, SMD Technologies is a brand originator, developer, distributor, and product manufacturer in South Africa.
The company boasts a broad range of brands, including Volkano, Amplify, Bounce, Rocka, Switched, Kingsons, and Elektra.
SMD Technologies general manager Michelle Wynne said they pride themselves on providing consumers with quality products.
âThanks to our far-reaching distribution channels, and offices across the globe, we have built our name on the stable yet growing foundation of our ability to create and nurture successful brands,â she said.
Ellies is an entrenched and beloved brand in South Africa.
Founded by Ellie Salkow in 1979 in Johannesburg. The company began with five employees and sold only television aerials.
Ellies expanded rapidly and opened branches in Cape Town, Durban, Port Elizabeth, Windhoek, Polokwane, Gaborone, Nelspruit, East London, and Bloemfontein.
The company broadened its product range in the nineties to include remote controls and other accessories.
With the advent of satellite TV in the South African market, the company founded Elsat in 1995, which soon became a household name.
Ellies was listed on the JSEâs Alternative Exchange in 2007. It issued its maiden dividend in 2010 and moved to the JSEâs main board in 2010.
The company became a firm favourite among investors and had an all-time high price of over R9.50 per share in May 2013.
There was tremendous excitement about its involvement in providing set-top boxes in partnership with Altech UEC as part of the digital terrestrial television (DTT) roll-out.
However, as the government started to fumble the DTT migration, so did the interest in Ellies and its prospects.
The share price declined by 80% between 2013 and 2014, and the company continued to lose value as it searched for new revenue streams.
A few years later, DStvâs subscriber numbers began to stagnate and decline in South Africa, causing that part of Elliesâ business to suffer.
By 2019, it was trading at 10c per share.
With changing market conditions, Ellies decided to focus on alternative energy solutions.
Unfortunately, it failed to execute on this strategy, leading to its business rescue and liquidation of Ellies Holdings.
SMD said the sale of the Ellies electrical brand will ensure that the trusted name remains available to its loyal customers.
âThe acquisition by SMD Technologies is set to revitalise the brand, leveraging SMDâs innovative approach and robust distribution network,â the company assured.
âBy integrating the Ellies electrical brand into its portfolio, SMD Technologies aims to uphold the legacy of the Ellies brand while introducing new innovations that meet the evolving needs of consumers.â
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