Datatec’s Logicalis in major US acquisition

File photo: Siphiwe Sibeko.

File photo: Siphiwe Sibeko.

Published Jul 29, 2015

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Johannesburg - Datatec, the JSE-listed international information and communication technology group, announced on Wednesday that its subsidiary, Logicalis, had agreed to buy Advanced Technology Integration Group (ATIG) for $42 million (R528 million).

The company said the purchase of the provider of system integration and professional services to enterprise and commercial customers across the US Midwest would consolidate Logicalis’s presence in the key region and present significant cross-selling opportunities.

ATIG had revenues of $133m in the year to December, and the acquisition is expected to be earnings-enhancing for Datatec.

ATIG employs more than 100 skilled staff across 14 offices and provides enterprise networking, data centre, unified communications, cloud and managed services solutions to a range of vertical markets including health care, state and local government, and education.

The acquisition, which is subject to a number of closing conditions, is expected to complete in September.

Jens Montanana, Datatec’s chief executive officer, said: “ATIG adds significant scale to Logicalis’s presence in the Midwest and is central to the consolidation of our position in that market.

“It also strengthens strategic relationships with key vendor partners Cisco, VMWare and HP and broadens our services scope into a new customer group,” he added.

ANA

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