ARIVIA.KOM, a new state-owned information technology (IT) company, would be launched early next year, Business Report said. The company is to be valued at R1bn in the first year and R2bn in the second year. Arivia.kom will be formed from the consolidated IT divisions of Ariel Technologies from arms manufacturer Denel, Datavia under transport group Transnet, and the IT division of Eskom, the power utility. The government had managed to strike a deal with trade unions, promising that all 1800 people employed by the divisions would not be retrenched. The new company would have a guaranteed market as it would keep contracts entered into with the divisions’ parent companies. Also, negotiations with the State Information Technology Agency (Sita) to outsource some of its work to the new company were under way, the newspaper said. Max Sisulu, Denel’s deputy chief executive, confirmed that the government had accepted the proposal to merge the three companies. He said the government would introduce a strategic equity partner and seek a listing for the new company.